Dive Brief:
- Dollar General is going hostile in its attempt to acquire rival Family Dollar.
- The $80 a share tender offer comes after Family Dollar twice rejected unsolicited bids from Dollar General and instead restated its commitment to a smaller bid by Dollar Tree.
- At issue are regulatory concerns. Family Dollar says it fears regulators will reject a merger with Dollar General and wants Family Dollar to assume any risks if that were to happen.
Dive Insight:
There's no doubt that a merger of any two of the three dollar-store companies would present a regulatory issue. But there's considerable doubt that regulators would require more from Dollar General than the promise it has already made to divest as many as 1,500 stores to win approval.