Thursday, July 19, 2007

FTC has Right to Block Merger

"In a high-profile exchange with Michael Pollan last summer, Whole Foods Market CEO and founder John Mackey took an avuncular approach to farmers' markets that might take business from his company.

"Whole Foods Market is committed to supporting local farmers' markets across the United States (and also in Canada and the U.K.)," he wrote.

Elsewhere, the executive has displayed a zeal to crush competition that might make his counterparts at Microsoft blush. Last spring, Mackey sent a blunt email to the Whole Foods board, explaining his intention to buy Wild Oats -- Whole Foods' only direct nationwide competitor -- for a price well above what many analysts thought Wild Oats was worth.

By taking over Wild Oats, he argued, Whole Foods would not merely be snapping up 110 fully functioning natural-foods stores across the nation. Grabbing Wild Oats would also buy Whole Foods the power to "avoid nasty price wars" in several markets, as well as "eliminate forever" the threat of a major nationwide competitor in the natural-foods space."

Read the article