The proposed merger of Whole Foods Market Inc. (NASDAQ:WFMI) and Wild Oats Markets Inc. (NASDAQ:OATS) is back in legal limbo.
On Thursday, U.S. District Court Judge Paul Friedman denied a Federal Trade Commission (FTC) request for an injunction to block Whole Foods' proposed US$565 million acquisition of Wild Oats, but the FTC was back in court Friday morning appealing the decision and requesting a stay that would allow it to temporarily block the proposed merger. The FTC also requested a stay of the judge's order allowing the deal to proceed.
The FTC claims the acquisition would stifle competition and lead to higher prices in the premium organic food market. But Whole Foods and Wild Oats have argued that consumers would not be affected because the two compete with conventional supermarkets that have been increasing their organic offerings.
Vancouver's Capers Community Markets was bought by Colorado-based Wild Oats Markets in 1996.