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Dollar General still fighting for Family Dollar


GOODLETTSVILLE, Tenn. — Dollar General is still fighting to acquire Family Dollar, the retailer stated on Thursday, noting that it is in ongoing discussions with the Federal Trade Commission. "The FTC has reached no final conclusion regarding the number of divestitures that would be required by a Dollar General/Family Dollar combination," Dollar General stated. "Dollar General has also had discussions with various potential buyers who have expressed interest in acquiring stores that may be required to be divested."

Dollar General, however, posed reservations concerning the FTC review. "In its review of the proposed Dollar General/Family Dollar transaction, the FTC has departed from the approach used to analyze retail mergers over recent years and has instead relied heavily on an untested theoretical model for predicting circumstances in which pricing will increase," the company stated. "The use of this model as a predictor of the likelihood of price increases is controversial, and the model is highly sensitive to adjustments in its assumptions and specifications. Based on these and other factors, including Dollar General's national, Walmart-focused prices, the company believes that if given the opportunity to complete the FTC review process, including substantial compliance and potential litigation, the number of required store divestitures would be manageable and should not exceed the 1,500 store divestitures offered by Dollar General, particularly if Family Dollar becomes an ally in Dollar General's discussions with the FTC."

Family Dollar is currently advocating a merger with Dollar Tree. Dollar General expects to complete the FTC's second request for information by Feb. 10.
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