Seeking Alpha reports about speculation that Sprouts Farmers Market is a likely takeover target in a marketplace where Amazon has bid $13.7 billion to acquire its larger, higher priced rival, Whole Foods.
The story notes that "Albertsons held preliminary talks to merge with Sprouts Farmers Market a couple of months ago. And Sprouts was at approximately $24 per share a couple of weeks ago when industry sources stated that privately-held Albertsons has been struggling in its quest to acquire a grocery store chain."
The story notes that "Albertsons held preliminary talks to merge with Sprouts Farmers Market a couple of months ago. And Sprouts was at approximately $24 per share a couple of weeks ago when industry sources stated that privately-held Albertsons has been struggling in its quest to acquire a grocery store chain."
- KC's View:
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At some level, the decision to acquire or not acquire Sprouts will depend on whether or not it is seen as a good deal, but it also seems at least possible that some player could overpay for Sprouts as a way of compensating for what Amazon is doing.
At some level, Sprouts is in the driver's seat - for now. The company's CFO said this week that as long as it serves the needs of Sprouts' customers, the chain has no intention of abandoning a deal with Amazon that has Prime Now providing online shopping services for 10 of its stores, with plans to expand.
