Cameron_Thomasine _ Team One _assignment 5b _Week 5 Team Paper
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Family Dollar, Inc. Merger Tina Adkins, Thomasine Cameron, University of Mount Olive BUS 630: Business Law Dr. Ronald Pressley November 29, 2015 Important Facts Family Dollar, Inc. Merger 1 The merger of Dollar Tree, Inc. (Dollar Tree) and Family Dollar, Inc. (Family Dollar) was anything but simple. Family Dollar was an interest of not only Dollar Tree but also Dollar General Corporation (Dollar General). Starting a year and a half before the merger of Dollar Tree and Family Dollar, Dollar General expressed interest in merging with Family Dollar. The New York Times reported that Family Dollar acknowledged that there had been past discussion from Dollar General about a possible merger; however, when they met on June 19, 2014, Dollar General expressed no interest. Therefore, Family Dollar and Dollar Tree proceeded with a proposed merger that they filed with the Security Exchange Commission (SEC) on July 27, 2014. This did not deter Dollar General from engaging in a bidding war for Family Dollar. Dollar General offered $8.9 million to merge with Family Dollar; however, Family Dollar accepted an $8.5 million deal from Dollar Tree. This was perceived to be a better fit for Family Dollar as the antitrust issues wouldn’t be as great as it would have been with Dollar General (De La Merced, 2014). Family Dollar noted that more than 6,000 Family Dollar stores had a rival Dollar General location within three miles of its location (Lipman, 2014). Dollar Tree and Family Dollar have two different business models. Dollar Tree is a company with mainly suburban stores, which sell a mix of consumables, gifts, party goods, greeting cards, etc. for $1.00 or less. Family Dollar sells lower margin consumables like food and other household goods for $1 to $5 with a target market of urban and lower...