Well, we didn’t exactly see this one coming: Family Dollar has rejected the advances of potential suitor Dollar General and its $9.7 billion bid to buy the smaller dollar store.
The New York Times reports that officials with Family Dollar cited “significant antirust issues” related to the offer as reason for its rejection.
North Carolina-based Family Dollar, instead, will stick with its earlier $8.5 billion merger deal with Dollar Tree to create a company with more than 13,00 stores and annual revenues of $18 billion.
“Our board reviewed, with our advisers, all aspects of Dollar General’s proposal and unanimously concluded that it is not reasonably likely to be completed on the terms proposed,” Howard Levine, Family Dollar CEO, said in a statement. “Accordingly, our board rejects Dollar General’s proposal and reaffirms its support for the pending merger with Dollar Tree.”
Officials with Family Dollar acknowledged on Thursday that they were party to several talks with Dollar General over the last year and a half to try to hash out a merger deal. However, they claim during that time that advisers warned a union would not pass regulatory scrutiny. And when Dollar General declined to attend an antitrust meeting in early June, and potential deal was all but dead.
The Times reports that when the two companies met again Family Dollar had already signed a nondisclosure agreement with Dollar Tree, preventing it from mentioning the pending deal.
Had the Dollar General bid won-out, the combined company would have included 20,000 stores in 46 states with annual revenue of $28 billion.
Family Dollar Rejects Takeover Bid by Dollar General [Forbes]
by Ashlee Kieler via Consumerist
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