Dollar General still in the hunt for Family Dollar

GOODLETTSVILLE, Tenn. — Dollar General on Friday stated that it remains actively engaged in discussions with the Federal Trade Commission regarding the extent of potential divestitures that would be required in connection with an acquisition of Family Dollar Stores. 

 

Dollar General does not expect to provide any further update prior to the Family Dollar shareholders meeting currently scheduled for Dec. 23.

 

"This morning’s brief press release from Dollar General likely left investors in two different camps," said Chuck Grom, Sterne Agee analyst. "The first being that Dollar General is very confident that a Family Dollar/Dollar Tree merger would not be approved by FDO shareholders next Tuesday or would be delayed until late January; therefore, there was no reason to provide additional details at this time. The second camp may believe that Dollar General had no good news to provide and their dealings with the FTC have not been favorable on the store closing front. However, given a number of news reports suggesting that the deal will be delayed till late January — we’re leaning toward the first scenario."

 

Goldman, Sachs is acting as financial advisor to Dollar General. KKR Capital Markets and MCS Capital Markets are advising Dollar General on the financing. Simpson Thacher & Bartlett is acting as its legal counsel.