Dollar General offered $9.7 billion, or $78.50 a share, for Family Dollar, while Dollar Tree had previously offered $8.5 billion, or $74.50 a share, in July.
The merged company would have nearly 20,000 stores in 46 U.S. states. Dollar General said it expects revenue to reach $28 billion and expects the deal to generate synergies of $550 million to $600 million three years after the deal closes should Family Dollar accept it. Dollar General also expects the merger to lead to double-digit adjusted earnings per share growth in the low double digits in the first full-year following the deal, less the costs tied to the merger.
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Dollar Tree stock was down 2.08% to $54.45 at 3:17 p.m. More than 7 million shares had changed hands, compared to the average volume of 2,687,760.
For more on Dollar General's offer to buy Family Dollar watch the video below:
Separately, TheStreet Ratings team rates DOLLAR TREE INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR TREE INC (DLTR) 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. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."