United Natural Foods Will Benefit from Whole Foods' Troubles

"Food distributor United Natural Foods Inc. may be the biggest beneficiary of a Federal Trade Commission decision to block a deal that would combine natural food stores Whole Foods Market Inc. and Wild Oats Market Inc., analysts said Wednesday.

Wall Street analysts say the coming together of the two store chains - United Natural Foods (nasdaq: UNFI - news - people )' two biggest customers - could slow the distributor's sales growth if competing locations are closed or the new combined company attempts to force lower prices.

But with the FTC block, the deal, and its potentially negative implications for United Natural Foods, has been put on hold."

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