Dollar General still wants to buy Family Dollar

Friday, August 29, 2014, Vol. 38, No. 35

NEW YORK (AP) — Dollar General Corp. said it still wants to buy rival Family Dollar, even though its nearly $9 billion offer was rejected by the discount retailer last week.

"We remain firmly committed to the acquisition," Dollar General CEO Rick Dreiling said in a statement on Thursday.

Last week, Family Dollar rejected Dollar General's $8.95 billion offer in favor of a slightly smaller one from rival Dollar Tree Inc. for about $8.5 billion. Family Dollar said a deal with Dollar General, the nation's largest dollar-store chain, would be too hard to get approved by antitrust regulators.

Dreiling said Thursday that the acquisition could gain approval.

"We continue to believe the potential antitrust issues are manageable and that our transaction as proposed is both superior and achievable," Dreiling said in a statement.

Family Dollar did not respond to a request for comment. Dollar Tree declined to comment.

Dollar General also said Thursday that its second-quarter revenue rose 7.5 percent from a year ago to $4.72 billion, thanks to higher cigarette, food and candy sales at its stores.

On a per-share basis, the company said it earned net income of 83 cents per share, meeting Wall Street expectations.

Dollar General, which is based in Goodlettsville, Tennessee, has more than 11,500 stores around the country. A combination of Matthews, North Carolina-based Family Dollar and Chesapeake, Virginia-based Dollar Tree would create a chain with almost 20,000 stores.