The family dollar agreed to merge with Dollar Tree. According to New York Times “Family dollar approved the retailer’s $8.5 billion merger with Dollar Tree” (Family Dollar Shareholders Approve Sale to Dollar Tree). This article explains the details of Family dollar merger with Dollar tree. As the article states, “Investors holding 74% of Family Dollar’s total outstanding shares voted in favor of the proposal. When the first offer was made to merge with dollar tree that time Family Dollar vote was been postponed because there was not enough votes to adopt dollar tree merger. With support of institutional shareholder services and Glass Lewis supported the Dollar Tree bid. Investors finally decided to merge with Dollar Tree. Dollar Tree sells everything for $1 or less. And Family Dollar has multiple price points. These two stores merging as one will give competition to rival Dollar general, Walmart and other stores”( Family Dollar Shareholders Approve Sale to Dollar Tree). The Major advantage of this merger is as Dollar tree sells the product in $1 limit has the chance to go up …show more content…
“Dollar Tree's consumption credentials may help stretch the family's dollar. As the two companies combine their purchasing power and streamline distribution, consumers may see more private-label $1 food and other consumable items in Family Dollar Stores. Inserting as many of these products as possible among the labels loyalists expect to see could help revive Family Dollar's lagging profits”( How Will Merger Change Family Dollar, Dollar Tree Stores). As noticed Family Dollar recently lowered prices on 1,000 items, many of them to a large quantity and low price. Dollar Tree Have Price under $1 this category and can certainly help Family Dollar to gain