The Whole (Foods) Enchilada

Federal investigators as well as the SEC are probing arguments about the half-handed “merger” between Wild Oats and Whole Foods.

The deal between Whole Foods and Wild Oats, in which Whole Foods proffered a set amount per share of Wild Oats, below market, was originally slated to expire July 20.
Whole Foods extended the “offer” to August 10. Reason? The Feds held them off.

Online financial message board postings linking Whole Foods prompted initial inquiries by the SEC, so they cannot go through with any purchase until the Feds decide whether or not the proposed acquisition is even legal.

Reports (here by MSNBC) indicate that U.S. organic food products are now marketed in EVERY major supermarket chain across the country, and the industry is enjoying doubled annual growth with sales reaching upwards of $20 billion in 2006.

Giant food companies such as Kraft, General Mills and Frito-Lay have alternatives to their own, high-fat, high-sugar, trans fat brands, such as Boca Burgers, Cascadian Farm and Baked Lays, respectively.

However, the FTC argued that the buyout would “curtail competition and raise prices in that segment.”

Does that make sense even though anyone can buy organic at any major grocer?