Dollar Tree to shutter 340 Family Dollar Stores to close deal

Discount retailer Dollar Tree said Tuesday (April 7) it expects to be able to complete its purchase of competitor Family Dollar in May, and it will have to sell about 340 Family Dollar locations to close the deal.

Dollar Tree said the Federal Trade Commission is almost finished reviewing the $8.5 billion acquisition and has identified 340 stores that it wants the company to sell in order to preserve competition for consumers. Dollar Tree said all or almost all of those stores will be Family Dollar locations. It said the stores have about $47.4 million in operating income.

The deal for Family Dollar was first offered in July. The FTC's review has lasted longer than the companies expected, as Dollar Tree had hoped to close the deal as early as March.