Wild Oats Markets said that the U.S. Federal Trade Commission will file a lawsuit to block its acquisition by Whole Foods Market and that the companies will challenge the opposition.
On May 22, Whole Foods , the largest natural and organic grocer, extended its tender offer for Wild Oats for a third time, even though enough shares have been tendered, as it waited to hear whether U.S. regulators would challenge the deal.
In February, Whole Foods said it planned to buy smaller rival Wild Oats for $18.50 a share, or about $565 million, to compete better with other grocers selling organic and natural fare.