Ira Stoll on Why the Government Wants to Meddle in a Dollar Store Merger

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in July, Dollar Tree announced a bid to take over Family Dollar for
$74.50 a share in cash and stock, or about $8.5 billion. Last week,
Family Dollar rejected an all-cash offer from Dollar General at
$78.50 a share, or about $9 billion. What strikes Ira Stoll about
the whole thing is the role that the U.S. government seems to be
playing in depriving the owners of Family Dollar of the extra
half-billion dollars (though some of that half-billion would go
toward paying a “breakup fee” to Dollar Tree). What is the
government protecting against? The risk that the dollar store
company will use its newly enlarged market clout to negotiate
better terms from its suppliers, thus saving customers even more
money? 

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