Federal Judge gives Whole Foods the greenlight to wrap up acquisition of Wild Oats
From the Washington Post…
A federal judge yesterday rejected an attempt by antitrust regulators to stop Whole Foods’ pending acquisition of rival Wild Oats, clearing the way for the nation’s largest organic and natural food chain to expand its reach.
U.S. District Judge Paul Friedman of the District denied the Federal Trade Commission’s bid for a preliminary injunction, essentially allowing the $565 million deal to proceed. The judge’s legal basis for the ruling, which contains sensitive information about the companies’ operations and business prospects, remains under seal.
FTC officials have the option of appealing the decision and seeking an emergency delay, the judge noted. Earlier, Whole Foods announced that it had extended its tender offer for Wild Oats through Monday. If regulators do not act, the companies could be free to merge “at any point after noon, Eastern time” Monday, they said in a statement.
You may have read about Whole Foods CEO John Mackey’s adventures in not-so-anonymous internet postings a few weeks ago when it came out that he had been posting anti-Wild Oats rants under an assumed name on a Yahoo finance. It’s good (for Whole Foods stockholders) that Mackey’s wacky adventures didn’t get in the way of their buy-out. Whole Foods is planning on absorbing the Wild Oats brand into their stores and will shut down Wild Oats stores in competing markets. We’ve got both stores here in Portland, Maine and I’ve read in the local news that the Wild Oats employees aren’t happy to be looking down the barrel of a layoff. Today’s ruling puts the nail in the coffin.
