It was announced this morning that Family Dollar shareholders approved the proposed $8.5 billion merger with Dollar Tree, ending months of speculation over whether Dollar Tree or Dollar General would merge with Family Dollar.
According to reports, the combined companies will operate more than 13,000 stores in 48 states and Canada, with sales of more than $18 billion.
As previously reported (and blogged about: Family Dollar rejects Dollar General’s higher offer, to pursue deal with Dollar Tree; and Dollar General not giving up on Family Dollar acquisition), Dollar General offered $9.7 billion, but in order to approve such a deal, the Federal Trade Commission would require about 4,000 store divestitures, compared to about 300 for the deal approved today.
After Family Dollar twice delayed the shareholder vote, Dollar Tree threatened to walk away from its offer if the deal wasn’t approved this week.
The companies expect the deal to close as early as March. Dollar Tree CEO Bob Sasser will lead the merged company, with Family Dollar CEO Howard Levine reporting to Sasser.