Wednesday, February 21, 2007
Whole Foods pleased traders Wednesday with late-breaking news that the natural foods retailer would buy competitor Wild Oats Market, helping send shares higher despite the fact that the company also reported declining net income in the first quarter.
Whole Foods announced that it was purchasing its rival for $565 million. The Austin, Texas-based chain will pay $18.50 per share for the company and will assume all of Wild Oats' $106 million in debt.
Not sure if I like this move. Whole Paycheck is just going to boost their prices even further, now with one giant competitor absorbed out of the way, they can further highway rob people who like healthy foods. It's ridiculous what Whole Foods often charges. This does not help. I still hold a grudge for them buying out Mrs. Gooch's so maybe I am not the most unbiased observer, but this IMHO stinks.
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