Laurie Wiegler | Staff Reporter - Transport Topics
Amazon.com Inc. said that it will buy Whole Foods Market Inc. for $13.7 billion, and the deal is expected to benefit trucking.
The online powerhouse announced its plans on June 16, offering to pay $42 per share for the natural foods grocer.
The deal follows Whole Foods’ announcement a month ago of a board shake-up and cost-cutting plan amid falling sales. The grocery store operator was also under pressure from activist investor Jana Partners.
While the purchase could prove disruptive for other industries, trucking should be OK and may even stand to profit, according to industry observer Russell Leo, CEO of RLS Logistics.
“The overall impact is positive for the transportation industry — from the grocery side it’s a different answer, and even with that I don’t know how negative it would be,” Leo said. “For trucking and logistics, I see it as neutral if not a positive impact because Amazon is still showing brick and mortar is still key.”
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