Dollar Tree pushed back the expected closing date for its purchase of Family Dollar Stores until early July, saying it’s still negotiating with regulators to clear the deal.
The discount chain is working with the US Federal Trade Commission to gain approval, according to a statement included in its first-quarter results. In order to placate antitrust authorities, the company has agreed to divest hundreds of its stores. Dollar Tree had said in April that the deal might be completed in May.
“The FTC’s staff has substantially completed its review and we plan to divest approximately 330 Family Dollar stores representing approximately $45.5 million of operating income,” Dollar Tree said in Thursday’s statement. “The company intends to reach an agreement with a divestiture buyer in the coming days and secure FTC clearance thereafter.”
Investors approved the almost $9 billion transaction in January after a six-month takeover saga, spurning a higher offer from Dollar General that was considered too risky. While trying to ward off Dollar General, Dollar Tree said it would more easily clear antitrust hurdles. Still, the completion date has now been delayed multiple times as the company works with regulators and other parties.
Dollar Tree originally said the merger would be closed in “early 2015.” In February, the company said it was working to complete the deal by 27 April. Then in April, it pushed it to May. An early July closing date would come almost a full year after the transaction was originally announced. Randy Guiler, a spokesman for Chesapeake, Virginia-based Dollar Tree, declined to comment.
Bloomberg News, edited by ESM