Amazon Might Face a Rival Bidder for Whole Foods
Amazon.com's plans to purchase Whole Foods Market might be foiled by another interested buyer. The Los Angeles Times reports Wall Street signaled Monday that it expects a rival offer for Whole Foods to surface, and many industry and merger experts agreed. “We wouldn't be surprised if there's a bidding war” for Whole Foods, the 465-store chain that focuses on natural and organic groceries, analyst Karen Short of Barclays Capital Inc. said in a note to clients Friday.
Total Retail's Take: It makes sense that another company would try and make a higher offer for Whole Foods. The announced acquisition last week caused quite a stir in the retail world. Rumored potential bidders could include Kroger Co., parent company of the Ralphs and Food4Less supermarket chains; Albertsons, which also owns Vons and Pavilions; and retail giant Wal-Mart Stores Inc., among others. If the deal with Amazon does ultimately end up going through, the grocery industry stands to look a lot different going forward.