US regulators have revealed that it will require more time to examine Amazon’s $13.7bn (£10.5bn) purchase of Whole Foods after few groups stated that there were anti-trust issues.
Democrats have demanded that the authorities should consider whether the deal would affect the choice of customers in the food market.
Merger to Linger – Wholefoods
Whole Foods announced in June that it expects to close the deal in the second quarter of 2017 but cautioned investors that it might take longer than anticipated.
Though many still believe the deal will still be push through.
They have also argued that the company still face rivalry from other popular establish firms like Target, Walmart and the likes.
However, the deal has attracted much scrutiny, particularly during matters relating to the fall out of an alliance with a lot of US manufacturers, as well as telecommunications, banking and airline.
Democrats have added an anti-trust matter as a vital aspect of its economic agenda. Also, president-elect, Donald Trump said Amazon had a lot of anti-trust concern”.
Amazon said it will return all paperwork to the Federal Trade Commission during this week, re-scheduling its deadline for a preliminary government inspection of the agreement, Whole Foods said in a filing with the Securities and Exchange Commission.
Against Monopoly – Democrats
Democratic Rep. David Cicilline earlier this month asked Congress to file in a hearing to review the agreement, saying “it brings up major concern relating to competition rule”.
The Costumer supervisor, a costumer rights group, also demand that government should prevent the agreement only if Amazon adjust the lineup pattern of products which the group says misguides buyers on discounts.
Amazon disagrees with Customer supervisor claims; however, Reuters announced last week that the government will look into the findings as part of their investigation of the Whole Foods purchase.
Three investors of Whole Foods have also ordered a class-action appeal over the projected tie-up, stating that the price is lower than the company’s value, alongside other concerns.