Friday, December 19, 2014

Dollar General not giving up on Family Dollar acquisition

Dollar General CEO Rick Dreiling said earlier this month that his company remains committed to acquiring Family Dollar, who has already agreed to be purchased by Dollar Tree, pending government approval. (See Family Dollar rejects Dollar General's higher offer, to pursue deal with Dollar Tree.)

Dreiling said Dollar General expects to provide Family Dollar shareholders with an update on its offer prior to Family Dollar's December 23 shareholder meeting.

According to an industry analyst cited in a Supermarket News story, "From an economic perspective, Dollar General has room to raise its bid, although unless it has very good visibility on the Federal Trade Commission's thinking on store divestitures, there would likely be a limit beyond which it could go."

Over the summer, Dollar Tree offered $8.5 billion for Family Dollar Stores, which was followed by Dollar General's $9.2 billion cash offer. Family Dollar chose to pursue the Dollar Tree bid, stating that "a transaction with Dollar General has a high likelihood of not closing due to antitrust considerations."

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