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FTC approves Dollar Tree's takeover of Family Dollar

(Reuters) - Dollar Tree Inc (DLTR.O) was given the go-ahead to buy Family Dollar Stores Inc (FDO.N) by the U.S. Federal Trade Commission on condition that they sell 330 Family Dollar stores, putting to rest a year-long merger saga.

Dollar Tree said it expects the deal to close on Monday.

The stores spread across 35 states, which Dollar Tree has offered to sell to private equity firm Sycamore Partners, has to be sold within 150 days after the deal closes, the agency said.

The FTC put the value of the Family Dollar acquisition at $9.2 billion. (http://1.usa.gov/1LXQDY1)

Dollar Tree said in April the FTC had identified about 340 stores to be divested for the deal to go through.

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.

Family Dollar had rejected Dollar General's superior offer, citing antitrust concerns.

The deal, which was announced in July 2014, was designed to fend off growing competition from Wal-Mart Stores Inc (WMT.N) and No.1 U.S. discounter Dollar General Corp (DG.N).

Dollar Tree sells a mix of consumables in suburban stores across most U.S. states, as well as discretionary items such as gifts, party goods and greeting cards. Everything has a price tag of $1 or less.

Most Family Dollar stores are in low-income neighborhoods. Its presence is biggest in Texas and the eastern United States, where it mainly sells lower-margin food and household products.

(Reporting by Diane Bartz in Washington and Yashaswini Swamynathan in Bengaluru; Editing by Sandra Maler and Don Sebastian)