Discount store chain Dollar Tree Inc said it would purchase rival Family Dollar Stores Inc for about $8.5 billion, creating North America's biggest discount retailer.Shares of Family Dollar, which has been under pressure from activist investor Carl Icahn to sell itself, rose almost 25 percent to $75.50 in premarket trading on Monday. Dollar Tree shares were up 8.8 percent at $59.Dollar Tree, whose products cost $1 or less, caters to the middle class. While Family Dollar also sells many items priced at $1 or less, it stocks items priced $1-$5 and higher as well."This acquisition will extend our reach to lower-income customers and strengthen and diversify our store footprint," Bob Sasser, Dollar Tree's Chief Executive said in a statement.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR fell by 1.33% or $-0.73/share to $54.22. In the past year, the shares have traded as low as $49.59 and as high as $60.19. On average, 1648380 shares of DLTR exchange hands on a given day and today's volume is recorded at 1117595.
Family Dollar Stores, Inc. (Family Dollar) operates a chain of more than 7,900 general merchandise retail discount stores in 46 states, providing consumers with a selection of merchandise in neighborhood stores. Shares of FDO fell by 0.79% or $-0.48/share to $60.66. In the past year, the shares have traded as low as $55.64 and as high as $75.29. On average, 1634020 shares of FDO exchange hands on a given day and today's volume is recorded at 1692796.
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