Wal-Mart Stores Inc is not actively considering making an offer for Whole Foods Market Inc, a source familiar with the matter told Reuters.
Whole Foods, which accepted a $13.7-billion offer from Amazon.com Inc. last week, has not received any rival bids as of yet. Amazon’s proposed purchase of Whole Foods brings disruption to the $700 billion U.S. grocery sector, a traditional area of retailing that is in the middle of an intense price war.In preparation for that price war, Wal-Mart in recent months has cut grocery prices, improved its fresh food and meat offerings, modernized shelving and lighting in its grocery department and expanded its online pick-up service.
Whole Foods shares have been trading above Amazon’s deal price of $42 per share since the deal was announced last Friday, as stock market investors speculate about the possibility of a higher offer. Whole Foods shares reached a high of $43.84 earlier on Friday, but dropped after Reuters reported that no rival bids have so far emerged. Its shares were last trading after hours at $42.85.
Wal-Mart, the world’s largest retailer, has been investing heavily in building its e-commerce business and has been acquiring smaller online companies such as Jet.com, ModCloth, Moosejaw and Bonobos.”Bidding for Whole Foods would be a 180-degree turn from what Wal-Mart’s strategy has been for the past two to three years,” said Edwards Jones analyst Brian Yarbrough.
