Family Dollar Company - Essay Example

Though the amount posted by Dollar General for the merger was far better, the lack of compliance on the company’s part saw the deal being snatched away from the palm of their hands by Dollar Tree. The major requirement for the Dollar General- Family Dollar merger to come to fruition was that the former should sell at least 3500 overlapping stores as this would pose a problem with antitrust regulators. Dollar General was reluctant as the number was too high for it to divest. Family Dollar and Dollar Tree merger will be forced to part ways with 300 stores only.

Therefore, the shareholders made a plausible choice by voting for Dollar Tree despite a lower initial amount that the company brought forth. Dollar General’s inability to divest more than 3500 stores meant that the merger would have faced problems with the antitrust regulators. Furthermore, the number of stores that were to be divested in the Dollar General- Family Dollar merger was very high and would cost the shareholders millions of dollars. On the other hand, Dollar Tree- Family Dollar merger would lead to a loss of 300 stores that can be easily recovered in the near future.