Utah Attorney General Sean D. Reyes Announces Terms of Settlement Allowing Dollar Tree to Acquire Family Dollar’s Stores
Attorney General Sean Reyes announced the terms of a settlement that he and 17 other States have reached with Dollar Tree, Inc., following their review of the company’s proposed acquisition of Family Dollar Stores, Inc. The merger combines two large national chains of deep discount stores.
Working with the Federal Trade Commission, the State Attorneys General are requiring Dollar Tree to sell more than 300 Family Dollar stores to a new competitor in order to complete the acquisition. All of the affected stores are to be sold and re-branded as Dollar Express stores, a new chain of deep discount stores being launched by Sycamore Partners.
“This is the best outcome for our citizens in Utah. Antitrust attorneys in our office led by Antitrust and Market Frauds Section Chief Ronald Ockey have assessed Utah’s market in relation to this merger and have found that it would substantially lessen competition in certain communities unless these divestitures occur,” said AG Reyes. “The legal expertise of our Antitrust Section will ensure that these areas remain competitive with different retail store options working to serve consumers with best prices and merchandise.”
To address these specific local areas where Family Dollar stores are situated near Dollar Tree stores, six Family Dollar stores will be required to be sold to Dollar Express in Midvale, Ogden, Provo, Salt Lake City, St. George and West Valley City. In addition to these stores being sold to Dollar Express, Dollar Tree will be required to report and to notify the Utah Attorney General’s Office of future acquisitions or store relocations or closings in certain local market areas.
“We appreciate the work of the Federal Trade Commission and many other Attorneys General Offices that our office has worked with in conducting a national review of the transaction,” said Attorney General Reyes. The 17 Attorneys General have filed their lawsuit and proposed consent judgment in the Federal District Court for the District of Columbia.
Sycamore Partners is expected to acquire the stores being divested over the coming few months and operate them under its Dollar Express banner.
Dollar Tree (NASDAQ: DLTR) is headquartered in Chesapeake, Virginia and operates more than 4,200 stores, including 38 stores in Utah. Family Dollar (NYSE: FDO) is headquartered in Matthews, North Carolina and operates more than 8,000 stores nationwide, including 55 stores in Utah. Family Dollar also operates a Distribution Center in St. George, Utah, which also will be acquired by Dollar Tree.
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