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US: Amazon to issue up to US$16 bn in debt for Whole Foods deal

 |  August 14, 2017

Amazon.com is planning to issue up to US$16 billion in debt to fund its planned acquisition of Whole Foods Market, according to Moody’s Investors Service.

The online retailer announced in June that it would acquire the grocery retailer for nearly US$14 billion. This merger has sparked panic from other grocery companies, concerned that the combination of Amazon’s online presence and Whole Food’s status as a leading organic grocery retailer would greatly increase competition. In late July, a group of Democrats in Congress urged the US Department of Justice and Federal Trade Commission to scrutinize the deal.

On Monday, when Moody’s Investors Service noted the debt plan they also assigned the deal a Baa1 rating and revised Amazon’s credit outlook to positive from stable.

The move “reflects our view that despite the increase in debt, the Whole Foods acquisition is an immediate credit positive for the company on a variety of fronts,” Moody’s Vice President Charlie O’Shea wrote in a note.

Full Content: Market Watch

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