A federal appeals court has given the green light for Whole Foods Market to acquire rival organic grocer Wild Oats Markets.

A three-judge panel of the United States Court of Appeals for the District of Columbia rejected a request by the Federal Trade Commission to delay the merger pending its appeal.

"We are pleased to have cleared what we expect to be our last legal hurdle," John Mackey, the chief executive and co-founder of Whole Foods, said in a statement. Whole Foods' $565 million offer to buy the outstanding shares of Wild Oats expires on Monday.

The government has argued that the merger of the two leading, organic specialty grocers would lead to higher prices and fewer choices. Whole Foods contends that it competes against larger supermarket chains and not just specialty stores.

The F.T.C. could still pursue its lawsuit, but some experts say that is unlikely.

"I think the FTC has an uphill battle here," Bruce McDonald, a former deputy attorney general at the Justice Department, told Reuters.


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