Israeli retailer Blue Square is set to buy a majority stake in local natural and organic retailer Eden Briut Teva Market.

Blue Square said today (3 August) that it had signed a deal to buy 51% of the EDEN business for around NIS22.5m (US$5.2m).

Eden is a niche retailer set up four years ago, operating just two stores.

Yesterday, Blue Square, which operates 181 stores in Israel, said it had been the victim of an extortion attempt.

Blue Square said a lawyer had approached it on behalf of a supposed client who claimed there were certain defects at the meat operation in the Park Raanana Mega store operated by BSIP.

Blue Square said the lawyer demanded payment of millions of Israeli shekels by Blue Square in return for refraining from publicising the claimed defects and not filing a class action.