Dollar Tree Inc. has been given Federal Trade Commission approval to acquire Family Dollar Stores Inc. The two companies began a march towards acquisition in early 2014.
The deal, worth an estimated $9 billion, was targeted for a May close date.
In April executives at Dollar Tree said the FTC had substantially completed its review of the planned acquisition and identified about 340 stores for divestiture.
Dollar Tree and competitor Dollar General Inc. engaged in a bidding war for Family Dollar. The winning offer included both cash and stock options. Executives at Family Dollar worried that combining the two stores would have led to regulatory hurdles that may have ended any possibility of a merger.
Family Dollar shareholders overwhelmingly approved being sold to Dollar Tree in April, choosing regulatory certainty over a riskier–but higher–offer from Dollar General. Dollar Tree deal won 89% of the vote.
Shares of Dollar Tree have increased approximately 13% in 2015.