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Brian Sozzi Wonders: Should CVS Health Scoop Up Divested Family Dollar/Dollar Tree Stores?

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The proposed merger between Dollar Tree, Inc. (NASDAQ: DLTR) and Family Dollar Stores, Inc. (NYSE: FDO) is one step closer to being finalized, but still requires regulatory approval.

Dollar Tree is confident it will receive the green light from regulators if it were to proceed with divesting as many of 500 of its stores. The company will be required to sell its stores to another discount retailer.

Brian Sozzi of Belus Capital Advisors commented in an article on The Street that some of the locations would be an ideal fit for CVS Health Corp (NYSE: CVS) that would allow the pharmacy chain to provide pharmaceuticals and basic preventive care services to newly insured, lower income families.

Dollar Tree closed Thursday at $70.25, up 3.6 percent.

Family Dollar closed at $76.44, up 1.18 percent.

Posted-In: Belus Capital Advisors Brian Sozzi Discount Retailers Dollar Tree family dollar Pharmacies retailersAnalyst Color


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