Associated Press
Thursday, October 25, 2007

Federal regulators are continuing legal efforts to block Whole Foods Market's $565 million takeover of rival Wild Oats despite the deal having closed in late August.

The Federal Trade Commission tried to block the deal this year on antitrust grounds. A federal district court ruled against the agency in August. The FTC appealed that ruling, but the U.S. Court of Appeals for the D.C. Circuit refused to halt the transaction involving the nation's two largest natural and organic-food grocers.

Federal regulators usually end litigation after deals are completed, because they can be difficult or impossible to unwind. In a recent case involving oil and gas refiners in the Southwest, the FTC gave up after the courts ruled the company combination was legal.

However, the FTC said Monday that there is still time to remedy the acquisition's anticompetitive effects because Whole Foods continues to operate many Wild Oats stores separately, under the Wild Oats name.

After the deal closed, Whole Foods filed a request with the court Oct. 9 to dismiss the FTC's appeal. But in a Monday filing, the FTC said the appeal is still relevant and asked the court to set an expedited schedule for the case.

Phone calls to Whole Foods seeking comment were not immediately returned.