Discount retail giant Dollar General has raised its offer to purchase rival Family Dollar.
The Goodlettsville-based retailer has boosted its bid from $78.50 per share to $80 per share for a bid worth nearly $10 billion.
More importantly, the retailer has agreed to divest up to 1,500 stores as part of the agreement to help alleviate any antitrust issues. In its original offer last month, Dollar General said it would be willing to divest around 700 stores.
In addition, the company has agreed to pay Family Dollar a $500 million fee if a deal couldn't be approved by regulators.
In rejecting Dollar General's first offer, the Family Dollar board of directors said the original deal didn't do enough to address potential antitrust concerns from federal regulators.
The combined company would have more than 20,000 stores in 46 states, with more than 160,000 employees and combined annual revenue of $28 billion.
"We are confident that our enhanced proposal sufficiently addresses any concerns that led Family Dollar's board of directors to reject our prior proposal without any discussions between our companies," said Rick Dreiling, Dollar General's Chairman and CEO. "If the Family Dollar Board fails to seize this opportunity to maximize value for its shareholders, we will consider taking our superior proposal directly to the Family Dollar shareholders."
The bidding war started in late July with retailer Dollar Tree made an $8.5 billion offer to purchase Family Dollar, which was accepted by Family Dollar's board. As of last week, the company said it was firmly committed to the original offer.
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