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The world’s largest food and grocery chain has announced a $10 billion merger with Whole Foods Market Inc., in a move that could bring significant benefits to consumers.
The announcement was made Friday as Whole Foods’ shares climbed 2% to $2.27, after it confirmed it had entered into a transaction with Apple Inc., a deal that will create a massive global food and beverage retailer.
Shares of Apple rose 3.6% to close at $220.57.
Whole Foods, which is the third-largest grocer in the U.S., is also working to expand its distribution network.
The company said in January that it planned to begin expanding its stores in some of its most popular markets in 2021.
It said the transaction would be valued at more than $100 billion, including about $5 billion in cash.
Wholesale grocer Wal-Mart Stores Inc. and the discount retailer Target Corp. are expected to announce similar deals in coming weeks.
Shares for Whole Foods were up 0.7% to a high of $24.90.
The company’s shares fell 1.3% to end at $1,269.35, and its stock has been trading below $20 for years.
The stock is down about 50% over the last five years.