Foot Locker Stockholders OK Merger

Shareholders for Footlocker (New York) have overwhelmingly approved merging that company with Dick’s Sporting Goods (Pittsburgh). Still unclear is whether the deal will face any objections from federal regulators.

Roughly 99% of the shareholder votes cast in a special meeting on Aug. 22 were in favor of the merger, representing 70% of its outstanding shares, Foot Locker said in a news release.

“We are pleased with the results from our special meeting and thank our shareholders for their support as Foot Locker embarks on this exciting new chapter,” said Footlocker CEO Mary Dillon. “We are now one step closer to joining forces with Dick’s and even better positioning the business to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry. We look forward to continuing to work closely with Dick’s to complete this transaction and unlock its significant value creation potential.”

The companies said they expect the $2.5 billion deal that was announced in May to close in the second half of this year “subject to the satisfaction or waiver of customary closing conditions, including the receipt of required regulatory approvals.” That latter provision remains a question mark; earlier this month U.S. Sen. Elizabeth Warren asked the Federal Trade Commission to block the deal, citing concerns it will stifle competition and raise prices.

Thus far, the FTC has made no announcements related to the acquisition.