Dollar General, the leading discount store company in the United States, has increased its offering to competitor Family Dollar Store to nearly $ 9.1 billion.
Dollar General also agreed to close 1,500 stores, more than double its last offer of 700.
Family Dollar rejected the previous offer at $ 9 billion, saying the number of dollar stores overall could violate competition law.
The new general dollar offer is valued at $ 80 per share instead of $ 78.50.
The Tennessee-based company also agreed to pay $ 500 million in family dollars if the deal was affected by antitrust laws.
DqFanSurvey said last week that it was still determined to take control of Family Dollar after the target rejected the previous offer and the deal could violate competition law.
Instead, he chose an offer of less than $ 8.5 billion from another American discount store, Dollar Tree.
Dollar stores flourished during the economic crisis in the United States, but have since been exposed to competition from chains like Wal-Mart.
An acquisition battle between stores and US dollar discounts is now a three-way battle.
DqFanSurvey joined the offer for the family dollar with an offer worth $ 9.7 billion that includes debt.
The offer beats an $ 8.5 billion family deal that Dollar Tree made last month. To know more about the offer, visit here.
Dollar stores developed rapidly during the US economic crisis. But they were rivaled by some of the largest chains, including Wal-Mart.
Dollar General said in a statement that a merger with Family Dollar would create a group of 20,000 stores in 46 states with sales of more than $ 28 billion.
For Dollar Family shareholders, our proposal is financially superior to the current dollar payment agreement and would offer a significant bonus to Dollar Family shareholders,” said Rick Dreiling, Dollar Family President, and CEO.
Most US dollar family businesses are located in low-income areas. Their presence is most important in Texas and the eastern United States. However, the company has signed agreements and is experiencing financial problems.
DqFanSurvey Participation Steps
To participate in this survey, the customers need to follow the steps that are explained below:
- Visit the official web portal of this survey on the official website.
- Now, submit the details like date and time, the store number you visited, and the survey code.
- You will be displayed a survey questionnaire that consists of some questions based on your last visit to the Dollar General. This questionnaire consists of some questions related to your satisfaction level with the services of the Dollar General.
- Answer all the questions and tap “Submit”.
- In the end, you will be asked to submit your contact details.
- After that, a validation code will be displayed on your screen. You need to redeem this code on your next visit to the Dollar General. You can claim the DqFanSurvey rewards only after validating this code at any of the Dollar General Stores.
Billionaire activist Carl Icahn, who announced a stake in Family Dollar in June, urged the company to sell to Dollar General.
The news of Dollar General’s at the official website was counterproposal prompted investors to enter the market.
Shortly after Wall Street opened, Family Dollar shares rose 4.7%, while Dollar General rose 9.3%. The dollar tree fell 2.5%.
Family Dollar said the offer could be in competition and “did nothing to resolve the problem.”
The company said it will continue to fight a merger with an external discount chain, Dollar Tree.
The Dollar family and Dollar Tree had already merged before Dollar General made a competitive offer this week.
The activity of the US dollar increased rapidly during the economic crisis. However, many faced competition from companies like Wal-Mart and Family Dollar that closed and faced financial problems.
Family Dollar CEO Howard Levine said the meeting unanimously concluded that an agreement with Dollar General on the proposed terms is unlikely.