COMPETITION STILL EXISTS IN WHOLE FOODS/WILD OATS MERGER
It’s been a long ride with the Whole Foods/Wild Oats takeover, and here’s the latest development. After denying the FTC’s attempt to block the merger, Judge Paul Friedman released the details of his decision yesterday (August 21) to the public. In the 93- page document, Judge Friedman say competition from conventional supermarkets would prevent Whole Foods from making significant price hikes if it ever succeeds in acquiring Wild Oats. The Judge pointed out that supermarket chains such as Safeway and Kroger are starting to offer more organic products and redesign their stores after Whole Foods.
As you’ll recall, the FTC argued that a Whole Foods and Wild Oats merger would create a monopoly in the natural foods segment. Remember all that Rahodeb stuff that surfaced earlier this summer? Judge Friedman doesn’t seem to care. He never once mentioned the postings in his 93-page opinion, which was another key part of the FTC’s argument.
"If the combined firm raised prices or permitting quality to slide, many customers could and would readily shift more of their purchases to any of these alternative sources of natural and organic foods, often stores where they already shop," said Judge Friedman.
Meanwhile, the FTC won an appeal of Friedman's decision and put a hold on the takeover pending the appeal’s outcome. Earlier this week the appeals court asked the FTC and the two companies to provide more information by tomorrow (August 23).
Wild Oats said Whole Foods Market extended the expiration date for its offer to buy all Wild Oats to the close of business on August 27.
As you’ll recall, the FTC argued that a Whole Foods and Wild Oats merger would create a monopoly in the natural foods segment. Remember all that Rahodeb stuff that surfaced earlier this summer? Judge Friedman doesn’t seem to care. He never once mentioned the postings in his 93-page opinion, which was another key part of the FTC’s argument.
"If the combined firm raised prices or permitting quality to slide, many customers could and would readily shift more of their purchases to any of these alternative sources of natural and organic foods, often stores where they already shop," said Judge Friedman.
Meanwhile, the FTC won an appeal of Friedman's decision and put a hold on the takeover pending the appeal’s outcome. Earlier this week the appeals court asked the FTC and the two companies to provide more information by tomorrow (August 23).
Wild Oats said Whole Foods Market extended the expiration date for its offer to buy all Wild Oats to the close of business on August 27.
posted at 1:40 PM
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