Costco Whole Foods and Amazon Inc. will fight a proposed $3.7 billion merger deal with the U.S. grocery retailer, the companies announced Tuesday.
The deals, which also include a Costco Wholesea logistics company and Amazon’s warehouses and distribution business, were announced as the companies battled for customers and investors in a crowded market.
The deals were signed last month.
In a joint statement, Costco said the deal is “a win for consumers and for the American economy.”
“The merger offers Costco and Amazon the opportunity to further enhance our business, our employees, and our communities while simultaneously supporting the expansion of our e-commerce business,” the companies said.
“The Costco/Amazon deal will further expand our logistics capabilities and position our businesses as leading companies in the e-retail industry,” Costco said.
Amazon, based in Seattle, is the world’s largest online retailer with $2.6 trillion in annual revenue.
It has a large presence in the U, Canada, Latin America and Europe.
The deal is the largest in Costco and the second largest in Amazon’s history.
The two companies are both based in Omaha, Nebraska.
“This deal is a win for Costco and for our customers, our workforce and our community,” Amazon Chief Executive Officer Jeff Bezos said in a statement.
Costco is also in talks to acquire its largest competitor, Sam’s Club, for $1.2 billion, which would also be the largest acquisition in Amazon history.”
These two companies have created a great environment for people to work together, and we are confident that Costco will continue to be a strong leader in the marketplace for e-components and Amazon will continue its growth.”
Costco is also in talks to acquire its largest competitor, Sam’s Club, for $1.2 billion, which would also be the largest acquisition in Amazon history.