Now that courts have let the FTC have another bite at the Whole Foods (WFMI) merger with Wild Oats, it plans to examine the deal within an inch of its life. If the agency proves that the marriage is indeed anti-competitive, it will be interesting to see how it plans to de-merge the company.
According to The Wall Street Journal, the FTC might "open the possibility that it could try to halt further integration of the two companies or require Whole Foods to sell some operations." That probably won’t work. What firm would want to buy a small set of health food stores and then compete with the larger and more well-established Whole Foods franchises?
The other option is to simply separate the two companies. Give Whole Foods shareholders stock in each operation. Get new management for Wild Oats, and let the companies go back to warring with one and other. That may be an odd-ball approach, but it may be the only solution that works.
Douglas A. McIntyre
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
