NEW YORK — Dollar General is willing to pay a few more dollars to win the deep-discount retail war.
The discount chain offered Tuesday to raise its bid for Family Dollar to $9.1 billion in a renewed effort to win over its competitor from a rival $8.5 billion deal with Dollar Tree.
Perhaps more important, Dollar General, the biggest dollar-discount chain in the country, also added new provisions to its bid to provide more assurances to Family Dollar Stores in case their proposed merger runs into antitrust issues. In rejecting its bigger rival last month, Family Dollar publicly cited antitrust concerns as a chief reason, and privately suggested that any such bid needed stronger assurances should the government closely scrutinize the proposed union.
Under the terms of the revised offer, Dollar General will pay $80 a share, up from its original bid of $78.50 a share and from Dollar Tree’s $74.50-a-share bid. It will also pay a $500 million reverse termination fee if their agreement falls apart over antitrust concerns.
And Dollar General has more than doubled the number of stores, to 1,500, it is willing to divest to satisfy antitrust regulators.
“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,” Rick Dreiling, Dollar General’s chairman and chief executive, said in a statement.