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I need some assistance with these assignment. financial and managerial accounting in the wild oats and whole foods Thank you in advance for the help!
I need some assistance with these assignment. financial and managerial accounting in the wild oats and whole foods Thank you in advance for the help! The Federal Trade Commission makes a legal suit challenging the manner in which the purchase agreement between the two firms was effected citing antitrust issue and the inherent risk of a monopoly in the market for the companies that were merging were ranked the first and second respectively in that particular market (Aprill, 2008). This implies if a go-ahead would be granted for the firms to merge the market risks a situation whereby there is minimal competition with one company controlling pricing since the other players would not match its market penetration together with the customer base that it commands.
Apparently, the suit came a month after the merger had been completed when nearly all the required transactions had already been sealed. Some of the Wild Oats outlets had been rebranded to Whole Foods while others had been closed down or sold in cases where the two previous companies held concurrent stores. The share capital agreed to this particular merger deal was settled including Whole Foods absorbing the debts that Wild Oats held previously (Aprill, 2008). The suit was heard and determined by the district court where it was decided that all the due diligence required was followed thus giving the merger a clean bill of health to conclude the deal. It was a great relieve for both companies since they would not engage in reverse negotiations in the event the deal was cancelled. However contrary to everyone’s expectations the Federal Trade Commission went to the court of appeal to contest the ruling after some stores were found running under the original name of Wild Oats. The CEO of Whole Foods was in a dilemma of whether to continue affecting the remaining process of the merger or wait for the determination of the case in case the previous ruling is overturned in favour of Federal Trade Commission (Aprill, 2008).
The industry is founded on the trend in which consumers are turning to healthy living by consumption of natural and organic foods to avoid the effects that come along with genetically modified foods.