Pennsylvania Attorney General Kathleen G. Kane, on Monday, announced terms of a multi-state settlement that will allow Dollar Tree, Inc. to proceed with its acquisition of Family Dollar Stores, Inc.
The settlement comes in the form of a consent judgment reached after 17 states, including Pennsylvania, filed a lawsuit challenging the merger of the companies. They operate two of the largest discount general merchandise retail stores in the nation.
The lawsuit claimed competition would be substantially reduced if the merger of Dollar Tree and Family Dollar — a transaction valued at $9.2 billion — went through as originally proposed.
As part of the settlement, Dollar Tree is now required to sell 330 Family Dollar stores to a new competitor. The stores are expected to be sold to Sycamore Partners and remain deep discount stores under the new brand, Dollar Express.
Kane was concerned the merger as initially proposed would have created substantially less competition in 13 areas across Pennsylvania. As part of the settlement, Kane required 19 stores in those areas to be sold.