Family Dollar announced Friday morning that its board of directors has spurned rival Dollar General’s latest buyout offer due to continued concerns over antitrust issues.
The announcement came just three days after Goodlettsville, Tennessee-based Dollar General increased its offer for the discount retailer and added safeguards aimed at soothing Family Dollar’s concerns that the deal would run afoul of federal antitrust regulations.
Family Dollar, based in Matthews, N.C., wasn’t convinced.
“Our board of directors, with the assistance of outside advisers and consultants, reviewed all aspects of Dollar General’s revised proposal and unanimously concluded that it is not reasonably likely to be completed on the terms proposed,” CEO Howard Levine said in a statement. “There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process.”
The board reaffirmed its support for a deal with Chesapeake, Virginia-based Dollar Tree, which Levine said “delivers attractive value in the form of immediate upfront cash and upside participation in a combined Dollar Tree-Family Dollar entity, as well as closing certainty.”