Austin, TX-based Whole Foods Market, Inc. announced today that in connection with its tender offer for all of the outstanding shares of Wild Oats Markets, Inc. the Federal Trade Commission (FTC) has advised the company that it will file a complaint in the U.S. District Court for the District of Columbia seeking to block the proposed acquisition. The FTC also has advised Whole Foods Market that it will ask the Court to enter a temporary restraining order that would prohibit the Company from completing its acquisition of the shares of Wild Oats until the Court has resolved the FTC’s request for a preliminary injunction.

John Mackey, chairman and CEO of Whole Foods Market, stated, “We are very disappointed by this decision and we intend to vigorously challenge the FTC in court. 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. 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 to the proposed merger is based on its contention that the relevant antitrust product market is limited to natural and organic food stores and excludes other supermarkets. Whole Foods believes that the FTC’s position is without basis and contrary to its position in past merger reviews, where its definition of supermarkets has included conventional supermarkets, as well as Whole Foods Market and Wild Oats.