Dollar Tree Expects To Reach Agreement With FTC On Divestiture By Month-end

(RTTNews) - Discount stores operator Dollar Tree, Inc. (DLTR) Monday said it has made a divestiture proposal to the Federal Trade Commission and expects reaching an agreement with the FTC staff as to the specific number and locations of stores for divestiture by the end of January.

In an update regarding the status of the FTC's review of its pending acquisition of Family Dollar Stores, Inc. (FDO), the firm said staff of the FTC has provided Dollar Tree with a preliminary number of stores - roughly 300 - that appear to raise concern.

Dollar Tree expects that a number of stores are likely to be removed from this set due to adjustments to account for the Dollar Tree banner's $1 pricing model, while a small number of other stores may be added due to the existence of Family Dollar stores that adjust prices partially based on the presence of Dollar Tree.

Dollar Tree has identified potential divestiture buyers and expects to present potential buyers to the FTC for approval within a month.

The special meeting of Family Dollar shareholders to vote on the merger is scheduled for January 22. Dollar Tree expects to complete the financing for the merger in February.