Vitamin Cottage's Kemper Isely didn't know what all the fuss was about when government lawyers came to town as part of an investigation into Whole Foods' proposed purchase of Wild Oats.

The Federal Trade Commission sought to stop the transaction, worried that it would hurt competition and lead to higher prices.

"I said it didn't really make sense to me that they were blocking it," said Isely, whose company was subpoenaed and compelled to turn over its sales data.

A judge agreed Thursday, denying the FTC's request to stop the deal temporarily.

"The judge ruled properly on the issue," said Isely, Vitamin Cottage president and co-founder. "I think the Whole Foods position that this marketplace is a lot bigger than the government believes is correct."

"Every day, there's another article in the paper about somebody expanding its organic selection in its stores," Isely said.

Bennett Bertoli, co-owner of Sunflower Market, said the market for natural and organic foods is widening and increasingly competitive.

Wal-Mart, Kroger, Safeway and Costco are among the companies that have jumped in.

"This is but a blip on the radar screen when it comes to the total grocery dollars," he said, referring to Whole Foods and Wild Oats. "It's not a big deal."

Still, Pete Marczyk, owner of Marczyk Fine Foods in Denver, said the deal "in general, is probably going to be somewhat detrimental to consumers, particularly in markets where both stores are currently active."

The other retailers acknowledged that the closing of Wild Oats stores, if that occurs, would have some impact on competition.

"It sure as heck won't negatively impact us," Bertoli said. "There may be positives out of it if they close a number of stores. For every store that closes, it's one less unit to be competing with."

Marczyk said the most significant effect will be on the supply chain.

Suppliers to Wild Oats, for instance, might be spurned by the merged corporation, creating an opportunity for smaller businesses, he said. He added that Whole Foods is "much less willing" to let suppliers do business with other retailers and that it will be interesting to watch what will happen now.

STATEMENT, PLEASE

U.S. District Judge Paul L. Friedman: "For the reasons set forth in the Court's 93-page Opinion issues this same day under seal, it is hereby ordered that the plaintiff Federal Trade Commission's motion for a preliminary injunction is denied. This is the final appealable order. Any other pending motions are denied as moot. So ordered."

John Mackey, CEO, and co-founder of Whole Foods: "The District Court's ruling affirms our belief that a merger between Whole Foods and Wild Oats is a winning scenario for all stakeholders. We believe the synergies gained from this combination will create long- term value for customers, vendors and shareholders as well as exciting opportunities for team members."

Gregory Mays, chairman and CEO of Wild Oats: "We are very pleased with the court's ruling and always had confidence that, once presented with the facts, the judge would rule in favor of this merger. We continue to believe this merger is in the best interest of our stakeholders, as it will mean significant career opportunities for our store associates, capital investment in our stores to enhance the shopping experience for our customers, and value-creation for our shareholders. We look forward to closing the transaction."

FTC Competition Director Jeffrey Schmidt: "We respect the court's decision, which we currently are reviewing. We brought this challenge because the evidence before us showed that the merger would most likely result in higher prices and reduced choices for consumers who shop at premium natural and organic supermarkets. We are reviewing our options."

David Balto, a former policy director at the FTC who now represents several consumer groups : "If the merger goes through, it would be unfortunate. Ultimately, consumers will pay more for less. The reason Whole Foods has been a fairly aggressive competitor is because they've had Wild Oats champing at their heels. Increasingly, and we tried to explain this to the judge, it's not so much what you buy as how you buy that's the nature of competition. It's the entire retail experience."