Dollar Tree can continue merger with Family Dollar

The shareholders of Charlotte, NC based Family Dollar Stores chose to sell out to Dollar Tree instead of Dollar General Corp. Dollar Tree offers customers a wide range of goods in suburban stores for $1 or less across most regions of the country.

This announcement follows a coordinated effort among Mississippi, the Federal Trade Commission (FTC), and other state attorneys general.

Morrisey said it involves the acquisition of Family Dollar stores by Dollar Tree, an arrangement that combines two of the nation’s largest deep-discount retail chains.

Dollar Tree CEO Bob Sasser said: “This acquisition will extend our reach to low-income customers, while strengthening and diversifying our footprint”.

The approval apparently would not affect the ownership of “Dollar” stores in the Franklin County area. The Attorneys General filed their initial lawsuit and the consent judgment in the Federal District Court for the District of Columbia. (NYSE:FDO): On Thursday heightened volatility was witnessed in Family Dollar Stores, Inc. The stores tend to be smaller in size than “big box” stores and are often located within or near neighborhoods. “And Debbie Feinstein, director of the FTC’s Bureau of Competition explained, ‘This settlement will ensure that consumers will continue to benefit from competition among their local dollar stores”.

Sycamore Partners is expected to acquire the stores being divested over the coming few months and operate them under its Dollar Express banner. Meanwhile, Dollar Tree originally has about 4,891 stores spread across the U.S.as well as 189 stores in Canada. On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, Snyder James C Jr, Officer (Senior Vice President) of Family Dollar Stores Inc, unloaded 3,474 shares at an average price of $78.81 on March 6, 2015. Analysts at MKM Partners raised their price target on shares of Family Dollar Stores from $79.75 to $80.50 and gave the company a neutral rating in a research note on Wednesday, April 8th.