FTC still fighting Whole Foods-Wild Oats merger
FTC still fighting Whole Foods-Wild Oats merger
Contrary to what might be expected, the Federal Trade Commission has not stopped its efforts to block the merger of Whole Foods Markets and Wild Oats, even though the acquisition has been completed.
The FTC went to court this summer to block the acquisition, and it initially lost the case. However, the commission filed an appeal in the District of Columbia's Court of Appeals and received a temporary injunction that temporarily stalled the efforts of Whole Foods. Eventually, the judge in the case vacated the stay and allowed the acquisition to move forward, which it did.
In late August, Whole Foods announced that the acquisition was completed and that it had entered into a $700 million investment deal to finalize the transaction. Through September and into October, Whole Foods converted the operational side of Wild Oats, and in fact, in mid-October, Wild Oats top produce executive, Don Harris, was relieved of his duties.
However, the FTC has noted that many Wild Oats stores are still being run separately, so it apparently believes there is an opportunity to move forward with its appeal of the initial decision and try to undo the merger. Experts have been quoted in various publications as saying that it is very rare for the FTC to continue an appeal of a case once a merger has been allowed to be completed by the courts. These same experts gauge the FTC's chance of victory as very slim.
Neither Whole Foods nor the FTC has responded publicly to the published reports that the court case is moving forward and that the FTC has requested an expedited hearing.
The FTC based its initial opposition on antitrust laws, claiming that the merging of the nation's two largest health food chains was a violation. Proponents of the merger said that Whole Foods operates within the larger arena of conventional supermarkets, and its acquisition of Wild Oats still makes it just a medium-sized retailer with only about 300 stores nationwide.
The FTC went to court this summer to block the acquisition, and it initially lost the case. However, the commission filed an appeal in the District of Columbia's Court of Appeals and received a temporary injunction that temporarily stalled the efforts of Whole Foods. Eventually, the judge in the case vacated the stay and allowed the acquisition to move forward, which it did.
In late August, Whole Foods announced that the acquisition was completed and that it had entered into a $700 million investment deal to finalize the transaction. Through September and into October, Whole Foods converted the operational side of Wild Oats, and in fact, in mid-October, Wild Oats top produce executive, Don Harris, was relieved of his duties.
However, the FTC has noted that many Wild Oats stores are still being run separately, so it apparently believes there is an opportunity to move forward with its appeal of the initial decision and try to undo the merger. Experts have been quoted in various publications as saying that it is very rare for the FTC to continue an appeal of a case once a merger has been allowed to be completed by the courts. These same experts gauge the FTC's chance of victory as very slim.
Neither Whole Foods nor the FTC has responded publicly to the published reports that the court case is moving forward and that the FTC has requested an expedited hearing.
The FTC based its initial opposition on antitrust laws, claiming that the merging of the nation's two largest health food chains was a violation. Proponents of the merger said that Whole Foods operates within the larger arena of conventional supermarkets, and its acquisition of Wild Oats still makes it just a medium-sized retailer with only about 300 stores nationwide.
