Whole Foods Deal on Hold
A federal appeals court has temporarily blocked Whole Foods’ $565 million purchase of Wild Oats.
The U.S. Court of Appeals for the D.C. Circuit issued a stay yesterday, saying it needed time to consider the merits of a request for an injunction by the Federal Trade Commission, the Wall Street Journal reports (sub. req.). Briefs will be submitted in the case this week.
The court said its action should not be construed as a ruling on the merits, the New York Times reports.
Last week a federal judge refused to block the merger, saying he didn’t agree with government antitrust claims that the two chains dominated a distinct market for natural and organic foods. The FTC claims the buyout would allow Whole Foods to dominate the natural foods market and increase prices.
