Shareholders at Family Dollar Stores have approved the discount retailer’s proposed $8.5 billion sale to Dollar Tree. Approximately 74% of Family Dollar’s total outstanding shares voted in favor of the deal, according to a company statement.
The approval comes after months of speculation as to whether Family Dollar would accept a deal with Dollar Tree or rival Dollar General, whom had both taken interest in acquiring the company. Initially, Dollar Tree entered in the agreement to acquire Family Dollar at a price of $74.50 per share in July 2014. Dollar General had attempted to make an all-cash, $9.1 billion bid in September 2014 after the Family Dollar board of directors declined its initial $8.9 billion offer due to antitrust concerns.
“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.”
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The deal remains subject to approval by the Federal Trade Commission (FTC). If the FTC approves, the transaction could close as soon as March 2015.
Pending approval, Dollar Tree will vault ahead of Dollar General to become North America’s biggest discount retailer, according to Reuters. As part of the merger, the brands will continue to operate under the Dollar Tree and Family Dollar names.
