Tuesday, June 5, 2007

Wild Oats and Whole Foods Merger in Question

It seems that the FTC is fearful of Whole Foods taking over the world (and would that be such a bad thing:-?). Today's Austin Business Journal featured an article that highlights the pending merger between Wild Oats and Whole Foods and the FTC's attempts to block the merger. Check out the full article below:


The Federal Trade Commission will sue to stop a pending merger between rival natural foods grocers Wild Oats Markets Inc. and Whole Foods Market Inc.

Boulder-based Wild Oats (NASDAQ: OATS) has agreed to be acquired by Austin-based Whole Foods (NASDAQ: WFMI). The deal was announced in February.

Wild Oats said Tuesday it was informed the FTC will file a federal lawsuit to block the acquisition.

Greg Mays, chairman and CEO of Wild Oats, said in a statement that the company disagrees with the FTC's position. He said the company is confident that the court "will agree that this merger is pro-competitive and the FTC's application for an injunction will be denied, thus allowing us to proceed forward with the merger. "

He said Wild Oats would cooperate with Whole Foods in fighting the FTC in court.

Whole Foods is offering $565 million, or $18.50 a share, for all of Wild Oats' stock. The definitive merger agreement also calls for Whole Foods to assume Wild Oats' debt.

Wild Oats has 110 stores in 24 states and in Canada, while Whole Foods has 194 stores in the United States, Canada and the United Kingdom.

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