Dollar Tree satisfies FTC request for additional information in proposed merger of Family Dollar

CHESAPEAKE, Va. — Dollar Tree on Friday announced that it has certified substantial compliance with the request for additional information issued by the Federal Trade Commission regarding its proposed acquisition of Family Dollar Stores. 

 

Family Dollar previously certified substantial compliance with the FTC on Oct. 21, 2014. 

 

In order to facilitate the FTC's review, Dollar Tree and Family Dollar have agreed not to close the proposed merger prior to Dec. 30, 2014, unless the FTC completes its review of the proposed merger and terminates the waiting period at an earlier date.

 

The FTC staff has indicated that it is examining whether prices would increase if the parties no longer had to compete with each other, and an important factor in this examination is how prices would change under either of the merging parties' current pricing policies. The FTC staff has also focused on the similarity and differences between the parties' stores and other competing retail chains. The concerns and competitive theories articulated by the FTC staff would require divestitures in connection with the proposed merger. 

 

As Dollar Tree has previously committed to divest as many stores as necessary to obtain antitrust approval, it remains confident that it will obtain antitrust approval to consummate the proposed merger reasonably promptly, the company announced.

 

The special meeting of Family Dollar shareholders to vote on the proposed merger is currently scheduled for Dec. 11.