The following is not meant to be legal advice.
Many may have heard about the Wild Oats Markets, Inc. and Whole Foods Market, Inc. acquisition from the press on the CEO who spent much time posting on financial message boards. However, the two companies are famous also for their Federal Trade Commission (“FTC”) involvement.
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Would the merger result in higher prices, reduced quality, and fewer choices for consumers? The FTC alleged that Whole Foods and Wild Oats do not compete with mainstream supermarkets, such as Safeway or Kroger, or more specialized markets such as Trader Joe's or Wegmans. Is there support for the allegations? Walking around a Safeway these days, many will see that Safeway is starting to have its own organic brands.
The court focused on pricing, and did not think the FTC presented compelling pricing evidence though there was differentiated product market.
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