GOODLETTSVILLE, Tenn.-Responding to the rejection of its offer for Family Dollar, Dollar General said it would continue to pursue an acquisition of its dollar-store rival.
Yesterday, Family Dollar said its board had turned down Dollar General’s proposal, which amounted to about $9.7 billion in an all-cash deal. The company also said the board had also reaffirmed its unanimous support from the acquisition agreement it had already reached with Dollar Tree, which is worth $8.5 billion in cash and stock. Family Dollar said its board had determined that the Dollar General acquisition, if carried out, would have raised “significant antitrust issues” that might have prevented it from going through.
In the Dollar General statement, Rick Dreiling, chairman and CEO, said, “We have done extensive antitrust analysis using experienced advisors, the results of which confirm that the transaction as proposed is capable of being completed. We remain willing to share this analysis with Family Dollar and its counsel, and are confident that we will be able to quickly and efficiently resolve any potential antitrust issues.
“We are carefully reviewing and considering our options,” Dreiling added. “Our existing all-cash proposal, coupled with manageable antitrust issues, continues to make our proposal superior to the current transaction agreement with Dollar Tree.”