Dollar General weighing bid for Family Dollar

Just one week after Dollar Tree (NASDAQ:DLTR) reached an $8.5 billion takeover agreement with Family Dollar Stores (NYSE:FDO), Dollar General (NYSE:DG) is weighing the decision of putting in a bid.

Dollar General is said to be meeting with an adviser to determine which banks are willing to finance a counter bid, reported Bloomberg Businessweek.

Dollar Tree agreed to acquire Family Dollar after investors Carl Icahn and Nelson Peltz pushed for a sale a few months ago. Both companies' board of directors have already approved the sale.

Dollar General had previously passed on a chance to bid for the discount retailer, but insiders speculate that there is now a 50 percent chance that Dollar General push for a competitive offer.

As it stands, Family Dollar and Dollar Tree rank as No. 2 and No. 3 in dollar store chains respectively. Should they merge, they would overtake Dollar General as No. 1.

As sales trends improve, Dollar General has seen a successful summer that includes the rollout of digital coupon offerings for customers and the commencement of 700 new store openings.

Dollar Tree's sales are also on the rise. The retailer reported a record-breaking $2 billion in net sales for the first quarter.

For more:
-See this Bloomberg Businessweek article

Related stories:
Family Dollar adopts poison pill to fight off Icahn
Family Dollar to close 370 stores amid plummeting earnings
Family Dollar expands food assortment, lowers prices
Family Dollar COO Michael Bloom exits, Jason Reiser promoted to EVP, CMO
Family Dollar's earnings spike represents Dollar Stores' growth

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.