Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Dollar Tree, Family Dollar Stores settle FTC charges of anticompetitive acquisition, (Jul 2, 2015)
Organizations Mentioned:Dollar Tree Stores, Inc. | Dollar Tree, Inc. | Family Dollar Store, Inc. | Family Dollar Stores, Inc. | Sycamore Partners | Sycamore Partners, LP
By Jody Coultas, J.D.
The FTC announced today that Dollar Tree, Inc. and Family Dollar Stores, Inc. agreed to sell 330 Family Dollar stores to a private equity firm to settle charges that Dollar Tree’s proposed acquisition of Family Dollar would likely be anticompetitive.
Dollar Tree and Family Dollar both sell deeply discounted merchandise at prices below $10. Without a remedy, the acquisition would allegedly lessen competition by eliminating direct competition between Dollar Tree and Family Dollar, and increase the likelihood that Dollar Tree will unilaterally exercise market power. The FTC identified 330 stores in local markets from 35 states where competition would be lost if the acquisition went forward as proposed.
The settlement requires the divestitures to private equity firm Sycamore Partners be completed within 150 days following the acquisition. The settlement includes an Order to Maintain Assets, to ensure Family Dollar maintain the 330 stores until they are divested. A monitor will be appointed to oversee compliance with the settlement agreement. Details about the divestitures are set forth in the analysis to aid public comment for this matter.
Companies: Dollar Tree, Inc.; Family Dollar Store, Inc.; Sycamore Partners
News: AcquisitionsMergers Antitrust FederalTradeCommissionNews