UPDATE 1-Dollar Tree says FTC wants 340 stores sold ahead of Family Dollar deal
(Adds details, background, shares)
April 7 (Reuters) - Dollar Tree Inc said the U.S. Federal Trade Commission has identified about 340 stores to be divested for the $8.5 billion takeover of Family Dollar Stores Inc to go through.
Dollar Tree said it expects all or almost all of the stores to be that of Family Dollar, which operates more than 8,000 stores as of August 30.
The FTC declined to comment. Family Dollar was not immediately available for comment.
Dollar Tree said in February that the FTC was reviewing more than 500 stores for divestiture and it may have to close more stores than it planned. It had earlier expected to sell fewer than 300 stores.
The 340 stores represent about $47.4 million in operating income, Dollar Tree said in a regulatory filing on Tuesday.
The company said it expected to close the deal by May.
Family Dollar shareholders approved Dollar Tree's cash-and-stock offer in January, bringing to an end a months-long tussle between Dollar Tree and Dollar General Corp .
After the deal, Dollar Tree will control more than 13,000 stores across the United States and Canada, vaulting the company ahead of Dollar General to become North America's biggest discount retailer, with more than $18 billion in annual sales.
Shares of Dollar Tree and Family Dollar were little changed in extended trading. (Reporting by Yashaswini Swamynathan and Nayan Das in Bengaluru; Editing by Don Sebastian)
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