Dollar General Corporation Committed To Purchase Family Dollar Stores

Dollar General Corporation (DG: Quote) stated Friday that they are still fully committed to purchase Family Dollar Stores and that they are currently evaluating their next steps. This statement that Dollar General Corporation released came as a response after Family Dollar’s board of directors rejects Dollar General’s offer of all-cash proposal enhancement to be able to acquire all Family Dollar Stores share for $80 per share.

Family Dollar’s board on the other hand reaffirmed its overall recommendation to support the deal towards a rival, Dollar Tree (DLTR: Quote). The said deal is expected to close as early as the coming end of November. The deal was agreed upon late July that Dollar Tree will acquire Matthews, Family Dollar Stores that are based in North Carolina for $74.50 per share which is valued at $9.2 billion in cash and stock.

Dollar General Corporation made its intention to purchase Family Dollar Stores clears last August 18, with an impressive all-cash proposal amounting to $78.50 per share which is valued at $9.7 billion. The main goal was to thwart Dollar Tree’s previous bid. Family Dollar Stores later announced last on August 21 that they rejected the proposal Dollar General made because of considerations on antitrust regulations.

Family Dollar’s board also reaffirmed their recommendation to support the merger with Dollar Tree. Last Tuesday, Dollar General Corporation ups the ante on its goal to purchase Family Dollar Stores by offering 1.50 to 80 U.S. dollars per share, and if the FTC requires, they are also willing to raise store numbers they are willing to divest.