FTC to Try to Block Grocer’s Acquisition June 5, 2007
Posted by kimbojava in : Economics , trackbackDENVER (AP) — Natural foods grocer Wild Oats Market Inc. said Tuesday that federal regulators will file a lawsuit to prevent its acquisition by competitor Whole Foods Market Inc.Greg Mays, Wild Oats’ chairman and chief executive, said his company and Whole Foods will challenge any lawsuit that is filed because they believe the union of the two grocers will benefit the marketplace.
I’m no economist, but this makes no sense to me. Who does Whole Foods NOT compete with? The idea that the Wild Oats acquisition would limit competition in the whole/organic foods marketplace is preposterous. I can get organic food at Safeway, Long’s drugs, Trader Joes, Costco, Walmart, to name a very few competitors. To block this acquisition overly favors those competitors and violates the principle of anti-trust, does it not?
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