Business briefs: FTC lawsuit against Whole Foods

The Federal Trade Commission will file a lawsuit to try to prevent natural foods grocer Whole Foods Market Inc. (WFMI) from acquiring competing Wild Oats Markets Inc. (OATS) because it will reduce competition among natural and organic food stores. If the transaction is allowed to proceed, Whole Foods is likely to raise prices and reduce quality and services, the FTC said.

CEREAL PRICES

General Mills Inc. (GIS) will raise cereal prices June 25 to match increases by competitors. Customers should actually see lower prices per box, but the boxes will be smaller, so the effect is equivalent to a small price increase, the company’s representatives said. The maker of Wheaties and Lucky Charms has been looking for a way to boost profits on its cereals.

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