Dive Brief:
- Dollar General has offered to buy rival Family Dollar for $8.9 billion.
- The bid is 3.2% higher than an offer by Dollar Tree three weeks ago. That deal would create a nearly 20,000 store combination, much larger than segment leader Dollar General's 11,300 locations.
- In making its offer, Dollar General said it would be willing to sell off 700 stores to appease regulators.
Dive Insight:
This looks like particularly bad news for Wal-Mart, the king of the discounters and the largest seller of groceries in the nation. Dollar General, at least on grocery prices, is Wal-Mart's toughest competitor.