Dollar Tree has completed its $8.5 billion acquisition of rival discount chain Family Dollar after a year-long struggle that drew in antitrust regulators and rival bids. Stiff competition and contraction in margins hurt the results. “The takeover is expected to conclude early this month”. 1 stock experts have also rated a buy.
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The company shares have rallied 53.06% from its 1 Year high price.
Shares of Dollar Tree, based in Chesapeake, Virginia, rose 2 cents to $79.83 in afternoon trading.
“Without a remedy… the acquisition is likely to lessen competition by eliminating direct competition between Dollar Tree and Family Dollar, and increasing the likelihood that Dollar Tree will unilaterally exercise market power”, the FTC wrote in a statement last week. Despite those higher prices, though, Family Dollar is seeing costs rise, and, despite the brand names, sales fall.
From an income perspective, Family Dollar Stores Inc (FDO) has a dividend yield of 1.6%. Family Dollar Stores has a 52 week low of $59.81 and a 52 week high of $80.97. The 50-Day Moving Average price is $78.32 and the 200 Day Moving Average price is recorded at $76.43.
FDO reported last quarter earnings on July 01. The shares saw a net money flow of $(-2.99) million and the up/down ratio stood at 0.41. During the same quarter in the previous year, the company posted $0.85 earnings per share.
Dollar Tree, Inc. (NASDAQ:DLTR) has dropped 2.27% during the past week, however, the bigger picture is still very bullish; the shares have posted positive gains of 2.79% in the last 4 weeks.
Family Dollar Stores, Inc.
More than a dozen states, including Pennsylvania, filed a lawsuit challenging the merger, since the two companies operate the largest discount retail stores in the country. Its domestic purchases include basic, seasonal, closeouts and promotional merchandise.
To address these specific local areas where Family Dollar stores are situated near Dollar Tree stores, six Family Dollar stores will be required to be sold to Dollar Express in Midvale, Ogden, Provo, Salt Lake City, St. George and West Valley City.
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In April, the FTC had identified approximately 340 stores that needed to be divested in order to complete the sale.
