Wal-Mart Stores, Inc. (NYSE: WMT) Although Amazon wishes to purchase Whole Foods, there is a chance that Walmart might over power Amazon’s offer of $13.7 billion. Whole Foods’ stock has been trading above Amazon’s offer of $42 a share which might lead to a bidding war to finally come up with a price for acquiring Whole Foods.
With Amazon and Walmart already going head to head, there are other competitors that want to obtain this deal such as Target, Costco, and Kroger. However, Walmart is the only retailer that actually could have a legitimate shot of buying Whole Foods. The current offer only comprises 6 percent of their market cap while 3 percent of Amazon’s.
Among the many incentives of Walmart acquiring Whole Foods, grocery is the strongest advantage right now against Amazon. From this deal, Whole Foods’ audience can expand to more than 4,000 locations which each store placed in urban, high income areas.
Although this arrangement seems great and all, why should Walmart even spend $14 billion and more when they already have so many brick and mortar grocery stores? They continue to have a different culture than Whole Foods but also have similarities that can be a success if this deal is completed. They have way more financial dominance over Amazon but Amazon does have almost $20 billion more than Walmart and can easily beat any offer that comes their way.