Amazon said it has agreed to grocery chain Whole Foods for $13.4 billion.

Amazon had earlier said it would want to conquer new territory in supermarkets, amplifying the competition with Walmart.

For Whole Foods, the deal represents a chance to fend off pressure from activists investors frustrated by a sluggish stock price.

Whole Foods last month unveiled a sweeping overhaul of its board, replacing five directors, naming a new chairwoman and bringing in a new chief financial officer. It also laid out plans to improve operations and cut costs.

The e-commerce giant has been testing a variety of other retail concepts.