Attorney General Kane announces settlement allowing Dollar Tree to acquire

Discount retailer Dollar Tree, Inc.

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Dollar Tree, Inc. (NASDAQ:DLTR) has dropped 2.27% during the past week, however, the bigger picture is still very bullish; the shares have posted positive gains of 2.79% in the last 4 weeks.

“This is the best outcome for our citizens in Utah”, Reyes said. That overtakes Dollar General’s position as the largest discount store in North America with revenues of $18 billion each year. Dollar Tree offers customers a wide range of goods in suburban stores for $1 or less across most regions of the country. The merger deal between the two companies has been under discussion for the past year.

Sycamore Partners is expected to acquire the stores being divested over the coming few months and operate them under its Dollar Express banner. Family Dollar (NYSE: FDO) is headquartered in Matthews, N.C. and operates more than 8,000 stores nationwide, including more than 302 stores in Pennsylvania. Family Dollar sells items at well above $1.00, some are brand names.

Analysts say combining the two companies will nearly certainly bring the loss of some corporate jobs.

In the case of a former Value Mart store at 3400 W. 15th Ave., now in the process of being converted into a part of the Family Dollar chain, it will remain with the company that is being sold off to Dollar Tree, along with the Family Dollar store at 4301 Broadway.

Family Dollar shareholders ultimately approved the sale of the company to Dollar Tree in January because they saw it as more likely than a Dollar General takeover to win approval from antitrust regulators since Dollar Tree and Family Dollar’s business models are so different. The company said it has not disclosed any other organizational changes, including a successor to Philbin at Dollar Tree.

“Without a remedy… the acquisition is likely to lessen competition by eliminating direct competition between Dollar Tree and Family Dollar, and increasing the likelihood that Dollar Tree will unilaterally exercise market power”, the FTC wrote in a statement last week.

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The settlement comes in the form of a consent judgment that was reached after 17 states, including Pennsylvania, filed a lawsuit challenging the merger of the companies, which is valued at $9.2 billion, according to a press release from the Office of the Attorney General.

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