(this article originally appeared in NY POST)
Dollar General may have to divest more than double the 1,500 stores it said it was willing to sell if it wants to gain regulatory approval to buy arch-rival Family Dollar, The Post has learned.
The Federal Trade Commission may require the country’s No. 1 dollar store chain to divest more than 4,000 stores to win approval of its stalled $9.1 billion merger proposal, two sources close to the situation said Tuesday.
There is concern among the FTC staff that the two chains are mainly in competition with each other — and not with Walmart, drugstores and supermarkets, the sources said.
“The question is whether the [vastly increased] number of divestitures will allow [Dollar General’s] deal to work financially,” according to one source close to the situation.
Getting the FTC to change its mind on what retailers are its biggest rivals could take as long as six months — but rival Dollar Tree, the No. 3 chain in the sector, wants a vote on its proposed Family Dollar merger by Dec. 31, according to insiders.
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