Dive Brief:
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Dollar General Corp. has made good on CEO’ Rick Dreiling’s statement last week that it was committed to a merger with rival Family Dollar Stores Inc., boosting its offer by $100 million and adding provisions to ease antitrust concerns.
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Dollar General also said it would close 1,500 stores, more than double the 700 closures offered in its initial bid, also to address antitrust fears.
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Family Dollar Aug. 21 had rejected Dollar General’s initial $9 billion offer and terms, despite the fact that it was larger than that of another suitor, Chesapeake, VA-based Dollar Tree, saying the deal wouldn't likely pass muster with antitrust regulators.
Dive Insight:
In addition to moves and counter-moves in the three-way merger drama involving Dollar Tree, Family Dollar, and Dollar General, there’s a been a fair bit of rhetorical swiping as well. Dollar General has accused Family Dollar CEO Howard Levine of acting out of a desire to retain his job, rather than from his stated antitrust concerns. Family Dollar, for its part, dismissed that notion, saying its antitrust concerns are real and that Dollar General can't be trusted to adequately address them. Here we go.