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Old 06-05-2007, 02:24 PM
Boris Boris is offline
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Join Date: Sep 2002
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Default Whole Foods/Wild Oats merger

WSJ is reporting that the FTC plans to oppose this merger. Anti-trust concerns. If true, this will be one of the worst decisions in recent memory. The only way to extract monopoly rents in the grocery industry is to have a sweet location. Any by sweet location I mean protection from competition through zoning regulations. A merger of these two companies will do nothing to prevent this kind of localized monopoly. There is however a somewhat convincing history of economies of scale in the grocery industry. Meaning a merger of Whole Foods and Wild Oats could actually reduce prices for consumers, which is a good thing.
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