By Michael Calia
Dollar Tree Inc. said Monday that it expects to reach a deal by
the end of this month with the Federal Trade Commission over how
many stores it must divest to complete its $8.5 billion acquisition
of Family Dollar Stores Inc.
The discount retailer said it believes it will need to divest
fewer than 300 stores after the FTC provided it with a list of
about 300 stores that apparently raise antitrust concerns.
Dollar Tree said it expects several stores to be removed from
the FTC's list due to adjustments to the company's pricing model,
and that a small number of other stores might be added due to
Family Dollar Stores that adjust their prices at least partly based
on the presence of Dollar Tree stores.
Dollar Tree added that it has identified potential buyers for
stores that would have to be divested and that it expects to
present a list to the FTC for approval within a month.
The update comes after Family Dollar shareholders pushed back a
vote on the deal for a second time to give Dollar General time to
try to convince Family Dollar to accept its $9.1 billion all-cash
offer. On Monday, Family Dollar urged shareholders to vote for the
Dollar Tree deal at the Jan. 22 special meeting, warning that
Dollar Tree is not willing to agree to further adjournments.
Dollar General made an unsolicited bid over the summer after
Family Dollar and Dollar Tree announced their agreement. Family
Dollar has resisted Dollar General's offers because of regulatory
concerns over the amount of stores it would have to close to meet
antitrust requirements. Dollar General has offered to divest about
1,500 stores.
The FTC has been reviewing both potential transactions.
Write to Michael Calia at michael.calia@wsj.com
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