Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dollar General Corp. (DG) Merger With Family Dollar Stores, Inc. (FDO) Is A Big Deal: Patrick McKeever

Dollar General Corp. (NYSE:DG) is nearing the acquisition of Family Dollar Stores, Inc. (NYSE:FDO). Family Dollar acquisition in the retail space has been a long stretched story since the mid of 2014, with Dollar Tree, Inc. (NASDAQ:DLTR) supposedly made efforts to acquired Family Dollar first, which did not materialize. Then entered the fray was Dollar General Corp. (NYSE:DG) with a higher valuation of more than $9 billion. This again got some attention from Federal regulators. MKM Partners Managing Director, Patrick Mckeever talked on CNBC about this M&A.

Dollar General Corp. (NYSE:DG)

“Yeah, it is certainly a big deal. If Dollar General were to acquire Family Dollar, it will be on the north of the $9 billion merger. It would be a company with 20,000 stores and about $30 billion in revenues. So it will be a pretty big deal in the retail space and its certainly what investors are looking toward, more so than this morning’s third quarter results. I mean, they will certainly be important, but the other thing is more important, the potential merger here,” Mckeever said about the potential merger of Dollar General Corp. (NYSE:DG) and Family Dollar Stores, Inc. (NYSE:FDO).

Dollar General Corp. (NYSE:DG) is all set to reveal its quarter earnings reports just before the bell on Thursday, but McKeever feels that the potential merger of Dollar General Corp. (NYSE:DG) and Family Dollar Stores, Inc. (NYSE:FDO) is more important to investors than the quarter results.

The reducing oil prices have given a lot of savings for consumers, where a consumer can save a lot in gas stations. But what will be the story behind the retailers like Dollar stores who has these stations? Will they realize any profits with reduced oil prices? McKeever said that some stores have already started seeing benefits from the lowering oil prices. He feels that low end consumers benefit a lot, but it might take time for retailers to gain some benefit out of it.

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!