FTC Approves Amazon's Acquisition of Whole Foods
The Federal Trade Commission announced this week it will allow Amazon.com to continue its deal to acquire Whole Foods. The estimated $13.7 billion deal was under investigation to gauge whether the merger would decrease competition under federal regulations. Bruce Hoffman, acting director of the Federal Trade Commission Bureau of Competition, said in a statement it ultimately decided not to pursue the matter further. CNBC reports the two companies expect to finalize the agreement during the second half of the year. The merger was first announced earlier this summer.
Total Retail's Take: Whole Foods only had about 1.6 percent of the grocery market, so it was predicted there wouldn't be an issue with monopoly concerns. However, with Amazon's recent launch into physical storefronts and a meal delivery service, retailers are wary of what's to come. The acquisition of Whole Foods’ 400-plus storefronts will help Amazon create a much more prominent offline presence.