FTC Intends to Block Whole Foods-Wild Oats Merger

The Federal Trade Commission is preparing to halt the merger between Whole Foods and Wild Oats grocery stores.

The FTC says: "If the transaction continues unopposed, the FTC contends that Whole Foods is likely to raise prices and reduce quality and services unilaterally," according to the FTC.

Seeking Alpha calls this concern "perplexing" and Slate believes there would still be plenty of competition: "Any place with enough yuppies to support a Whole Foods or a Wild Oats is likely also to have a Balducci's or a Trader Joe's. And Britain's Tesco is coming into the United States."

What do you think? Could Whole Foods push prices even higher if Wild Oats became part of the growing Whole Foods chain?

Also, Whole Foods opened their first store in London this week. UK-based Tecso plans to open green stores in the US soon.

Comments (4)

I don't like mergers on principle, but it seems to be that blocking the merger will prevent whole foods from competing with d'agostino's or food emporium more than it prevent competition in the organic/gourmet foods markets

Where I live there is only 1 Whole Foods, and a handful of Wild Oats. Merging them would be the end of any competitive pricing. We are not so lucky as to have Trader Joe's, etc. The only other place to get some organics is WalMart, Hen House or Hyvee, and then your supply is limited.

But who's to say the prices will raise, just because it can? Whole Foods, to date, has been a company with a conscience, paying fair prices to it's suppliers, fair wages to its workers, and giving back to it's communities.

The large size gives them the power to aid smaller farms to keep producing quality, natural products instead of selling out to Del Monte to grow self-picking corn. The more customers buying these products, the more America changes for the better, moving towards a real-food society and away from the processed food society we've become.

If prices raise, I do think it's because the products cost more to produce, but if anything the large company can actually buy MORE from the same producers, and therefore charge LESS.

FWIW, I shop at Trader Joes for a few select items i can't get at WFs or the farmers markets, but I find their prepared items to be quite overprices and very low on quality for the most part. SOme of those freezer meals are quite atrocious.

Pity Trader Joes will probably never come to Austin. At least Central Market keeps them in check.