US: Dollar Tree’s merger deal deferred

A merger deal, which was expected to find closure by May, has not yet seen the light of the day. Dollar Tree Inc has found itself caught in a labyrinth of regulatory hurdles and antitrust obligations, putting off its intended merger to July.

Dollar Tree Inc, popular chain of discount variety stores that sells items for $1 or less, had plans to buy Family Dollar Stores Inc, in a deal settled at $9 billion. However, it is going through a rough patch presently, awaiting approval from the US Federal Trade Commission. For getting this approval, it has announced its disinvestment plans, wherein it will sell approximately 330 Family Dollar stores representing approximately $45.5 million of operating income. In a statement that came out on Thursday, the company said that it was on the lookout for a divestiture buyer.

Owing to the uncertainty that prevailed, the shares of Dollar Tree Inc plunged by 4.3 percent to close at $73 in early trading. Sales knocked down by about 3 percent in premarket trading.

Full content: The Wall Street Journal

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