Family Dollar rejects Dollar General offer

Family Dollar rejected a takeover bid from dollar-store competitor Dollar General, saying it would be too hard for the deal to get approval from antitrust regulators. Family Dollar’s board said it supports its existing deal to be acquired by Dollar Tree.

Howard Levine, chairman and chief executive of Family Dollar Stores, said in a statement Thursday that the company’s board and advisers reviewed Dollar General’s offer and determined that it probably would not be completed with the proposed terms.

Rick Dreiling, the Dollar General chairman and chief executive, said in a statement that his company was disappointed in Family Dollar’s decision, and that it had done an extensive antitrust analysis that confirmed that its proposal could be completed. Dollar General said it was willing to share its analysis with Family Dollar and that it was still confident it could resolve regulatory concerns about competition.

The businesses of Family Dollar and Dollar General are more similar than Dollar Tree’s. The first two sell items at a variety of prices; at Dollar Tree, all items are $1.

On Monday, Dollar General — which is based in Goodlettsville, Tenn., and is the nation’s biggest dollar-store chain — offered about $8.95 billion, or $78.50 per share in cash, for Matthews, N.C.-based Family Dollar. Last month, Family Dollar agreed to an $8.5 billion deal with Chesapeake, Va.-based Dollar Tree.

— Associated Press

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