Amazon can proceed with its purchase of Whole Foods after getting the green light from the Federal Trade Commission, which determined that the deal will not reduce competition in the grocery sector. The FTC announced its decision hours after Whole Foods’ stockholders approved the $13.7 billion transaction, said CNBC.
When the purchase was announced in June, it was regarded by some as a springboard to a possible revolution in food marketing. Amazon is dabbling in package delivery by drone. Some analysts say Whole Foods’ reputation for high-quality food could win over shoppers wary of buying perishables online. At present, only 4 percent of U.S. adults order groceries online at least once a week, says a Gallup poll.
The two companies expect to finalize the deal before the end of this year, said CNBC. In a statement, the FTC said it had investigated the deal under federal laws that safeguard competition. “Based on our investigation, we have decided not to pursue this matter further,” said the agency.