Albertsons Said To Be Plotting Financial Takeover Of Austin-Based Whole Foods: Report

AUSTIN, TX — Supermarket chain Albertsons is said to be making a play for Whole Foods Market, according to a published report.

Citing a pair of unidentified sources briefed on the matter, Financial Times reported a possible takeover of the high-end Austin-based retailer is underfoot. The U.S. private equity group backing Albertsons has had preliminary talks with bankers about making a bid for Whole Foods, according to the financial publication.

The Financial Times notes that Albertsons interest comes two weeks after activist investor Jana Partners revealed it had amassed a 9 percent stake in Whole Foods, setting the stage of a possible sale. Whole Foods has a market valuation of just more than $11 billion, and a deal between the two companies would be one of the largest take-privates in recent years, the Financial Times reported.

A take private is the action of public company (in this case Whole Foods) ceasing to trade on stock exchanges and becoming a privately held firm. After a company goes private, its shareholders can no longer trade their stocks in the open market.

The newspaper reported that Whole Foods has hired Evercore to advise it on a strategic review of its business operations up to a exploration into a sale. Alberstons has shown past interest in stores such as Whole Foods, offering an organic line of produce and other food items; Bloomberg earlier reported in March the chain had launched preliminary talks to merge with Sprouts Farmers Market, another well-known food retailer.

No formal talks between Alberstons and Whole Foods have taken place, the financial newspaper noted. As of 2015, Albertsons operated some 2,200 stores. The rumors of a purchase come amid a backdrop of mounting

No comment from Whole Foods on the matter.

>>> Read the full story at Financial Times

Photo courtesy of Whole Foods