NEW YORK, NEW YORK — The Federal Trade Commission says it will not block Amazon’s $13.7 billion takeover of Whole Foods Market.
The agency said Wednesday that it had investigated to see if the deal would substantially lessen competition or constitute an unfair method of competition, and decided not to pursue the matter further.
A union that represents food-industry workers has asked the FTC to scrutinize the proposed acquisition closely, saying that it could hurt competition and lead to job cuts.
Regulators tend to block deals when two direct competitors are combining, and Amazon — despite its dominance in the online marketplace — doesn’t currently have a big groceries business.
Whole Foods shareholders had voted earlier in the day to approve the deal.
The tech giant said Thursday that its takeover of Whole Foods will close on Monday. The first order of business will be to make some items more affordable, according to a release.
“Whole Foods Market will offer lower prices starting Monday on a selection of best-selling grocery staples across its stores, with more to come,” the company said in a statement.
That’s good news for Whole Foods critics, who have long bemoaned the grocery store’s high prices.
Amazon is also planning to bring some of its tech savvy into the Whole Foods business model — specifically by allowing Amazon Prime members to use their memberships at Whole Foods checkout and get special discounts.
“Everybody should be able to eat Whole Foods Market quality — we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” Jeff Wilke, CEO of Amazon Worldwide Consume, said in a statement.
