An End to the Dollar Wars?

Family Dollar shareholders voted overwhelmingly for Dollar Tree buyout.

January 23, 2015

CHARLOTTE, N.C. – It seems as if the dollar store merger drama of the past six months may finally be coming to an end as the shareholders of Family Dollar overwhelmingly approved being sold to Dollar Tree Inc. this week. The decision by shareholders affirms the plan first announced in July, which came into question weeks later as Dollar General presented a higher offer fraught with anti-trust concerns. 

The Dollar Tree deal won 89% of the shareholder vote, and it’s expected that the deal will close sometime this quarter. Once complete, the new Dollar Tree will keep both brands and operate both dollar store models — Dollar Tree’s, where all items are sold for $1, and Family Dollar’s model, where everyday goods and groceries are sold at a variety of discount prices.

The newly merged company will represent strong competition for market leader Dollar General, who had hoped the purchase of Family Dollar would solidify its hold on the dollar store market. However, Dollar General still plans to open an additional 730 stores in its coming fiscal year.

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