Family Dollar shareholders approved the $8.5 billion deal to be acquired by Dollar Tree with 74% of the votes cast in favor of the merger on Thursday (Jan. 22). Shareholders passed on the hostile $9.1 billion all-cash offer by Dollar General amid regulatory concerns.
Dollar Tree recently threatened to walk away after Family Dollar shareholders twice postponed voting to approve the deal.
“Today was the drop dead day. Shareholders got nervous," Edward Jones analyst Brian Yarbrough said.
Family Dollar CEO Howard Levine noted that the Dollar Tree deal was the right one for shareholders because it has a better chance of gaining regulatory approval than the higher Dollar General bid. Levine said he expects the Federal Trade Commission to approve the deal by the end of March.
Dollar General CEO Rick Dreiling called the vote a loss for consumers and Family Dollar shareholders.
Family Dollar shares (NYSE: FDO) rose 1.18% after Thursday’s vote. Shares closed at $76.44, up 89 cents. Share rose as high as $80.97 in recent months during the bidding war between its two suitors.