Dollar Tree Lays Out FTC Concerns Over Family Dollar Tie Up

Dollar Tree Inc. on Friday laid out concerns from the Federal Trade Commission over its potential merger with Family Dollar Stores Inc. . In a press release, Dollar Tree said the FTC has indicated some divestitures of stores may be needed for its Family Dollar merger, but that those won't be more than the retailer's original commitment in the July merger agreement, nor will they have a "material impact" on plans for the tie up. One of the FTC's concerns links to the fact that Family Dollar's current pricing rules apply to certain stores, where prices may rise if a local Dollar Tree isn't present. Dollar Tree also highlighted implications for the FTC's review of Dollar General's bid for Family Dollar. It said the FTC may also require divestitures far in excess of the 1,500 stores that Dollar General has offered to divest in its tender offer for Family Dollar. That could be a large and complicated divestiture, and involve months of negotiation with the FTC with no certainty over the outcome. Family Dollar will call a special meeting on December 23, 2014 for shareholders to vote on the pending merger. Family Dollar said it has agreed with Dollar Tree not to close the pending merger until Jan. 30, 2015, unless the FTC completes its review sooner.

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