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MATTHEWS, N.C. — Family Dollar Stores Inc. shareholders voted to approve the company's $8.5-billion proposed merger with Dollar Tree Inc.
Based upon a preliminary count, approximately 84 million shares were voted in favor of the merger proposal, which represents 74 percent of the total outstanding shares and 89 percent of the total shares voted.
“We are pleased with the outcome of today’s vote, and I want to thank Family Dollar stockholders for their support throughout this process,” said Howard R. Levine, chairman and CEO of Family Dollar. “The Family Dollar board of directors and management team have worked diligently to advance the best interests of all of the company's stockholders, and we are grateful for the support we received for the merger proposal."
The merger remains subject to approval by the Federal Trade Commission (FTC). Dollar Tree and Family Dollar agreed to provide the FTC with a four-week notice period prior to closing the transaction. Hence, according to Matthews, N.C.-based Family Dollar, the transaction could close as soon as March.
Family Dollar and Dollar Tree are both retailers of a variety of name brands, private-brand merchandise and more. These companies compete against convenience store retailers in several areas, including tobacco sales.
This merger's pending completion will officially derail Dollar General's $9.7-billion bid, which Family Dollar twice rebuffed citing antitrust concerns. The Goodlettsville, Tenn.-based discounter subsequently took a $9.1-billion offer directly to Family Dollar's shareholders in a hostile takeover attempt.
“Today’s vote is a loss not only for Family Dollar shareholders, but also for consumers across the country who will not have the opportunity to benefit from the cost savings and efficiencies that we believe would have been created by a merger between Dollar General and Family Dollar," said Dollar General Chairman and CEO Rick Dreiling.
"Despite our best efforts over the past few months, Family Dollar’s lack of engagement and a contracted transaction timeline ultimately prevented us from completing this transaction," he said.