Posted on 10/25/2007 7:59:13 AM PDT by Cat loving Texan
Antitrust experts call the agency's effort a long shot.
By Lori Hawkins AMERICAN-STATESMAN STAFF Thursday, October 25, 2007
The Federal Trade Commission is making a last-ditch effort to unwind Whole Foods Market's purchase of its biggest rival, even though the deal is done.
Despite losing a battle in a federal district court to block the deal in August, the FTC has not given up the fight. On Monday, the agency responded to a Whole Foods motion to formally dismiss the case with another filing. It said the appeal is still relevant and asked an appeals court in Washington to set an expedited hearing schedule.
In its Monday filing, the FTC said there is still time to undo the merger because Whole Foods continues to operate many Wild Oats stores under their original name.
The FTC has said combining the country's two biggest natural food grocers reduces competition. Whole Foods has argued that it competes in the much bigger general grocery market, where there is plenty of competition.
Whole Foods spokeswoman Amy Schaefer said the company had no new information regarding the FTC and declined to comment further.
Antitrust experts said they were surprised the agency had not given up on its effort to stop the merger and called the effort a long shot.
"It's going to be very difficult for the FTC to get this reversed," said Paul Yde, an antitrust partner in the Washington office of Freshfields Bruckhaus Deringer. "The district court judge's opinion was very strong for Whole Foods."
Whole Foods paid $565 million on Aug. 28 for Wild Oats Market and has sold some stores and announced initial plans to rebrand, remodel or close some others.
"The FTC wants to preserve the viability of some stores that would otherwise be closed," Yde said. Although the move to disrupt the deal "is unusual, the FTC's explanation is not unreasonable."
Combined, the companies own more than 250 stores and have annual revenue of more than $6.5 billion.
Whole Foods shares closed Monday down 35 cents to $47.70.
lhawkins@statesman.com; 912-5955
Can’t have supermarkets merging but the Chinese buying 3Com is fine.
Prohibiting this merger would appeal to the hippie-granola-liberals that are the bulk of each stores customers. Is the FTC heavily laden with Democrat administrators?
It’s ok to allow the cable companies to deny a-la-carte consumer choice for 20 years. That’s not a monopoly? The FTC sucks.
Seems to fine for Big Oil, Telcoms, banks, automakers, and insurance companies for all sorts of mergers?
Yup, cause they prostitute themselves to the highest bidder. Corrupt to the core in many cases. Wouldn't want ADM, Con-Agra and the likes to have some serious competition, now, would we?
big government to the rescuse, hold your wwallets. I still don’t get what the problem is.
Their revenue in 2006 was $5.6 Billion.
I’ve been to plenty of them and to their competitors. Whole Foods majority clientèle is as exactly as I have described them.
Big Oil? Why not simply "Oil" or the "petroleum industry"?
They are already closing Wild Oats stores and combining inventories. That horse is out of the barn, fed and already bedded down.
There are not that many granola eating hippies in the entire world!
5.6 Billion is a lot of granola.
Granola is a slang adjective as well a noun.
While not small patatoes
Safeway Stores did 9.82 Billion *last quarter* with a profit margin of over 29%.
Costco 1,103.21 Million, and so on.
Even way out here in the booonies, the local food chain Carrs/Safeway is the largest employer in the State.....
I did not like the merger because then it reduces even more the amount of choice in food. At the major supermarket chains, what you find in one is pretty similar to the others. I used to buy fresh extra black pumpernickel made in Denmark but now I no longer can find it anywhere.
Whole Foods used to have an awesome 365 cherry crush drink that I’d go out of my way to buy. They quit carrying it, at least at the store in my area. Don’t go there much anymore.
Because then Big Law wouldn't be able to demonize them as they did Big Tobacco.
I have not seen the cherry crush drink in my area. I forgot the name of the store before Whole Foods bought it but it sold an excellent Apple Brown Betty. No more. And Trader Joe no longer carries my favorite blueberry crumb cakes - used to have two servings in a package.
I only go to the Whole Foods in Berkeley, so that's the only one I can comment on. The sentiment among most of the Berkeley left is that it's preferable to shop at a similar store called Berkeley Bowl, because it's not "corporately owned." IOW, Whole Foods is considered to be part of those "evil corporations," like Haliburton. And, of course, now that it's acquired Wild Oats, I'm sure there will be pickets in front of the store. If so, it's going to be a pleasure to cross that line.
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