Whole Foods and Wild Oats - deal off?

Looks like the Federal Trade Commission is going to file suit to challenge the acquisition of WO by WF. It will be very interesting to see how the FTC defines competition for the potential merged company: is it just organic stores, or is it mainstream grocery chains, or is it Wal-Mart? Or, perhaps all of the above? Should be fun to watch.

[Robin Garr]

Looks like the Federal Trade Commission is going to file suit to challenge the acquisition of WO by WF. It will be very interesting to see how the FTC defines competition for the potential merged company: is it just organic stores, or is it mainstream grocery chains, or is it Wal-Mart? Or, perhaps all of the above? Should be fun to watch.

Very interesting, particularly considering that the joined company would be only a fraction the size of Walmart. Got a link to a news analysis, TP?

Here's one link:
FTC Will Try to Block Whole Foods, Wild Oats Merger

Looks like the Federal Trade Commission is going to file suit to challenge the acquisition of WO by WF. It will be very interesting to see how the FTC defines competition for the potential merged company: is it just organic stores, or is it mainstream grocery chains, or is it Wal-Mart? Or, perhaps all of the above? Should be fun to watch.

Very interesting, particularly considering that the joined company would be only a fraction the size of Walmart. Got a link to a news analysis, TP?

Hey, Robin - that was your 1000th post! Congrats! Are you worn out yet?!

I really think Whole Foods has the better argument here, in that they clearly are competing with a wide variety of grocery sellers, including Wal-Mart and Kroger, not to mention each community's version of Rainbow Blossom. But, the FTC seems bent on defining it as such a narrow niche that it will argue the opposite. As I said, should be interesting to watch.

Seems an odd time for the FTC to wake up and flex some muscle but the Patent & Trademark Office has been acting weird lately as well. Possibly trying to appease the Democrats after running wild for some time? Frankly, I would welcome some appeasement.

Seems an odd time for the FTC to wake up and flex some muscle but the Patent & Trademark Office has been acting weird lately as well. Possibly trying to appease the Democrats after running wild for some time?

Hey, we've got a big election in a year or so - time to seek the elusive populist middle.....

[Robin Garr]

Hey, we've got a big election in a year or so - time to seek the elusive populist middle.....

On the other hand, given the vast culture wars divide, it could have more to do with punishing Whole Foods because of their perceived progressive/tree-hugging/granola-munching image.

Hey, we've got a big election in a year or so - time to seek the elusive populist middle.....

On the other hand, given the vast culture wars divide, it could have more to do with punishing Whole Foods because of their perceived progressive/tree-hugging/granola-munching image.

Nah - they aren't important enough (or large enough) by which to make an example - either way. I think a conspiratorial politician could/would find much bigger and more visible targets it they wished.

Hey, we've got a big election in a year or so - time to seek the elusive populist middle.....

On the other hand, given the vast culture wars divide, it could have more to do with punishing Whole Foods because of their perceived progressive/tree-hugging/granola-munching image.

"Perceived" being the operative word.

[Robin Garr]

"Perceived" being the operative word.

Absolutely, Jay. I put Whole Foods and Costco in a similar category ... decent quality operations, but not nearly as liberal as people think, particularly when it comes to their attitude about organized labor.

Unreal. They do nothing when huge telecommunications and tech companies merge, but step in when a couple of upscale grocers do? How silly.

Maybe because Lil' George and the familia all have large stock holdings or interests in those tech and communication companies. Besides they're from Texas, beef n beans is their staple diet....

No need for root veggies or any items from a grocer who respects our environment like WF or WO...

Food for thought.

NPR had a story on it this morning. Apparently, FTC is concerned because they view organic food as a niche that WF could corner the market on. They also were concerned because WF and WO are usually in close proximity in cities guaranteeing the type of competition that protects consumers. I guess WF's practice of coming into a new city and opening a store across the street from an exisiting WO has come back to haunt them.

Very strange. Have the kids at the FTC figured out that a new boss may be coming to town in around 18 months? As for WF's founder John Mackey, he is an ardent Libertarian and says publicly that he voted for neither Bush nor Kerry. Maybe their co-presidents dissed a Bushie in Austin.

Looks like the Federal Trade Commission is going to file suit to challenge the acquisition of WO by WF. It will be very interesting to see how the FTC defines competition for the potential merged company: is it just organic stores, or is it mainstream grocery chains, or is it Wal-Mart? Or, perhaps all of the above? Should be fun to watch.

Yeah I heard a few days ago. The first thing that popped in my head was, is all of the other NON-natural and organic stores going to cease selling natural and organic foods since there is a category for it? Also, they haven't thrown into the equation the consumer. Let's say the Whole foods does decide that they have the total market and raises the price? Would that really be in their best interest when a consumer could bite the bullet and start shopping at the plethora of regular supermarkets again? They act as if there is no alternative to buying organic and natural....um yeah there is. It sounds like the FTC hasn't thought this through. Or, since I dont trust politicians or the government, what is the real story, if it is not so innocent?