Wild Oats: Sale Won't Lead to Price Rise - What?

The Federal Trade Commission filed an antitrust lawsuit to block the $565 million sale of Wild Oats Markets to Whole Foods Markets. The commission contends that the consolidation of the two largest natural food chains would result in raised prices and stifled competition.

Wild Oats lawyers said competition is expanding because other supermarkets are selling more organic and natural products. They contend that prices will actually drop. Huh? Lawyers will say anything for their clients.

Let’s see, we now have six major oil companies in the entire world (BP, Chevron-Texaco, Exxon-Mobile, Shell, ConocoPhillips, and Total) More than one half of all revenue in the oil industry is obtained by these companies out of a total list in the Global 500 of 34.. What do you suppose would happen if these companies were split into 12 companies?

Do you suppose if Kroger or Safeway was the only major chain of super markets that prices would decline? Are we better off now that Wells Fargo Bank has bought Crocker and First Interstate? There are now only two major banks in California. Bank of America and Wells Fargo Bank.

This is not a new phenomenon. Even during the Clinton administration the consolidation (merger and acquisition) continued unabated.