The share values of major Canadian grocers were falling on Friday, in the aftermath of Amazon’s announcement that it is acquiring Whole Foods Market for US$13.4 Billion.
Whole Foods Market has been struggling, recently, and has been trying to shed its “whole paycheque” image. In a letter to customers on Friday, Whole Foods said that this merger: “Presents an incredible opportunity to take Whole Foods Market’s mission and purpose to new levels and will create significant value for our stakeholders.”
They added that: “No artificial flavors, colors, preservatives, sweeteners or hydrogenated fats will ever be in any of the food we sell. Meat will still come from animals raised with no added growth hormones, ever. And all eggs in our dairy cases will continue to come from cage-free hens that aren’t given antibiotics. Those standards are core to Whole Foods Market and we will remain committed to them.”
This merger would create a massive company that would increase the competition in the grocery sector, a sector that is already particularly competitive. The share values of major Canadian grocery companies are responding negatively. Of note, Organic Garage (OG.V) is seeing the biggest sell-off, with shares down over 5%.
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