Dive Brief:
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A battle to acquire Charlotte, NC-based Family Dollar has been launched with a new $8.9 billion dollar bid from rival Dollar General, according to the New York Times. Other sources say the bid is closer to $9.7 billion.
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In late July, Chesapeake, VA- based discount variety-store retailer Dollar Tree Inc. announced a plan to acquire Family Dollar Stores Inc. for $8.5 billion in stock and cash.
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Dollar General said it's willing to divest itself of 700 stores to avoid antitrust issues.
Dive Insight:
With pressure from activist investors for Family Dollar to sell, it was Dollar General that had been considered the likely suitor for Family Dollar. That seemed less likely after chairman and CEO, Rick Dreiling announced he would retire in May next year, or sooner if a successor is found. Dreiling has now said he will stay until 2016 in light of the possible merger. In any case, while the bidding war may complicate matters, the consolidation in the dollar-store arena is clearly inevitable.