Walmart could enter bidding war with Amazon for Whole Foods

Walmart could enter bidding war with Amazon for Whole Foods

J.P. Morgan analysts say Walmart is the only company with the means to counterbid.

June 28, 2017
CNBC
Consumer Watch

WalMart could enter a bidding war with Amazon over Whole Foods, J.P. Morgan says Wal-Mart could enter a bidding war with Amazon over Whole Foods, J.P. Morgan says

WalMart could step in as a rival bidder for Whole Foods Market, J.P. Morgan analysts said, as shares of the grocery chain rose above the $42 price offered by Amazon earlier this month.

J.P. Morgan research analysts said in a note Thursday that WalMart could be drawn to Whole Foods for its relatively wealthier customers and strong brand, not to mention the chance to thwart Amazon's ambitions. It is in a better position than other retailers such as Kroger, Costco or Target coming in over the top, the analysts said.

"We do think there is a chance that Walmart makes a bid," the report said. "WMT stands out as the only company in our coverage with the means and motive to counterbid, but the motive is ultimately more driven by a defensive strategy."

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