Whole Foods, Wild Oats to challenge FTC lawsuit

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By Jessica Wohl

CHICAGO, June 5 (Reuters) - Whole Foods Market Inc. (WFMI.O: Quote, Profile, Research, Stock Buzz) and Wild Oats Markets Inc. OATS.O said on Tuesday that they would challenge U.S. anti-competition regulators that plan to file a lawsuit aimed at blocking the supermarket chains' proposed merger.

Whole Foods, the largest natural and organic grocer, announced plans to buy Wild Oats in February, after coming under increased pressure from mainstream grocers that were selling more organic, natural and prepared fare.

In May, Whole Foods said that staff members of the Federal Trade Commission had voiced concerns over the anti-competitive impact of the planned acquisition.

Now, the FTC is seeking a temporary restraining order pending a federal district court ruling on its request for a preliminary injunction, the companies said on Tuesday.

A spokesman for the FTC declined to comment.

Whole Foods and Wild Oats are the leading players in the organic niche of the food retail industry in the United States, but their total food sales pale in comparison to larger retailers such as leaders Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research, Stock Buzz) and Kroger Co. (KR.N: Quote, Profile, Research, Stock Buzz).