Foreign Exchange Market
Dollar Tree to buy Family Dollar in $8.5-billion deal
Dollar Tree to buy Family Dollar in $8.5-billion deal

Discount retailer Dollar Tree Inc. has agreed to purchase larger rival Family Dollar Stores Inc. for about $8.5 billion. The deal would create a company with $18 billion in annual sales and more than 13,000 stores, more locations than any other North American discounter, Dollar Tree said Monday. The sale comes in the wake of troubles for Family Dollar. The chain, based in Matthews, N.C., announced in April that it was closing 370 underperforming stores after its profit plummeted more than 30% in the second quarter. Last month, activist investor Carl C. Icahn disclosed a 9% stake in Family Dollar and urged the firm to put itself up for sale. The cash and stock deal is valued at...