After a year-long tussle with regulators, Dollar Tree Inc. has finally completed the $8.5-billion acquisition of rival discount chain Family Dollar Stores Inc.
This creates the largest chain dollar chain with annual revenue of $19 billion and 13,000 branches of the Dollar Tree in 48 U.S. states and Canada, the Associated Press reported.
Pennsylvania Attorney General Kathleen G. Kane announced the terms of the merger based on a multistate settlement that will allow Dollar Tree to proceed with its acquisition of Family Dollar, according to Fox News.
One of the concerns filed and resolved by the attorney general was the question of less competition in 13 areas across Pennsylvania. Thus, it was decided that 19 stores in those areas will be closed. Kane said that this will ensure that competition in these areas would still thrive and consumers are given the best options in spite the merger.
Kane said that the stores will be branded as Dollar Express. The mother company, Dollar Tree, from now on will be required to report or notify the Pennsylvania Attorney General's office of future acquisitions, store relocations or closings in the state, Fox News said.
She assured her office had closely worked with the other state attorneys general and the Federal Trade Commission for the national review of Dollar Tree's proposed buyout of Family Dollar.
The attorneys general filed their initial lawsuit and the consent judgment in the Federal District Court for the District of Columbia.
