Mergers, Acquisitions and Takeovers Case Study

Whole Foods Market's Acquisition of 'Wild Oats' - A Strategy to Reduce Competition?

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Abstract:
Whole Foods Market (WFM) and Wild Oats were major players in the highly competitive US organic food industry. In a much-speculated move, WFM acquired Wild Oats in September 2007. Many voiced the opinion that the acquisition may result in a monopolistic situation wherein WFM would control majority of the market. The acquisition was, however, seen by experts as an expansion strategy of WFM rather than one to reduce competition in the organic foods industry. The case focuses on the competition prevalent in the organic food industry, the trends and customer preferences of the same. The case also looks at the synergy and prospects of the acquisition.

Pedagogical Objectives:

• To comprehend the strategies of global players in the organic food industry
• Acquisition as a strategy to reduce competition
• Prospects and challenges in Merger of Equals (MoE).

Keywords : Organic food; Whole Foods Market; Wild Oats; Acquisition Strategy; Future of Organic food Industry; Market Segmentation; Pricing Strategy; Mergers,Acquisitions,Alliances Case Study; Distribution strategy

Contents : 
Organic Food Industry
Organic Food Sales through Various Retail
Major players in the Organic Food Industry
WFM’s acquisition of its competitor - Wild Oats
Future of Whole Foods Market and Wild Oats
Why Eat Organic Food?