NEW YORK (TheStreet) -- Dollar General (DG) shares are climbing 10.9% to $63.72 on Monday after entering an $8.95 billion bid for dollar store rival Family Dollar (FDO) .
The company's bid trumps the $8.5 billion bid of its other rival Dollar Tree (DLTR) .
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Dollar General, the largest of the three companies, said that it was prepared to sell up to 700 stores in order to get regulatory approval for the merger.
Family Dollar shares are up 5% to $79.90 on Monday while Dollar Tree shares are declining -2.2% to $54.38 today.
For more on Dollar General's offer to buy Family Dollar, watch the video below:
TheStreet Ratings team rates DOLLAR GENERAL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR GENERAL CORP (DG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."