FTC gives Green Signal to Dollar Tree to Buy Family Dollar Stores
The Federal Trade Commission stated that Dollar Tree and Family Tree will sell 330 Family Dollar stores. By selling these stores, they would be able to settle a complaint that their merger will probably be anticompetitive. With this, the FTC permitted Dollar Tree to buy Family Dollar Stores.
Dollar Tree said that the deal can be closed by Wednesday. As per the FTC, Dollar Tree has offered to sell the stores to private equity firm Sycamore Partners. There is a condition, as the stores need to be sold within 150 days after the deal is closed.
The acquisition has been valued at $9.2 billion by the FTC. In April, Dollar Tree said that the FTC has listed around 340 stores that can be divested so that the deal can take place. As the deal is done, Dollar Tree will have control of more than 13,000 stores in the US and Canada.
With this deal, Dollar Tree will become North America's biggest discount retailer. Family Dollar also received an offer from Dollar General, but the former refused the same citing competition concerns.
In July 2014, the deal was designed in order to discourage the competition from Wal-Mart Stores and Dollar General. Dollar Tree deals in different consumable goods in suburban stores in many US states. All the things sold under the company can be availed for $1 or less.