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Whole Foods Market to challenge FTC's attempts to block merger with Wild Oats
By Lisa Kerner
Charlotte, N.C., June 5 - Whole Foods Market, Inc. said it will "vigorously challenge" the Federal Trade Commission's attempt to block the company's proposed acquisition of Wild Oats Markets, Inc. in court.
As a result, Whole Foods expects to extend its tender offer for Wild Oats beyond the original expiration date of June 20.
"The FTC has failed to recognize the robust competition in the supermarket industry, which has grown more intense as competitors increase their offerings of natural, organic and fresh products, renovate their stores and open stores with new banners and formats resembling Whole Foods Market," Whole Foods chairman and chief executive officer John Mackey said in a company news release.
"Evidently the FTC does not appreciate the many benefits for consumers of the proposed merger, including our plan to invest capital in and improve many of the stores currently owned by Wild Oats."
The FTC's challenge is based on its contention that the relevant antitrust product market is limited to natural and organic food stores and excludes other supermarkets, the release stated.
On Feb. 21, Wild Oats agreed to be acquired by Whole Foods for $18.50 per share in cash.
Whole Foods Market is an Austin, Texas-based natural and organic foods retailer.
Wild Oats Markets is a chain of natural and organic food markets based in Boulder, Colo.
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