Family Dollar is looking like the prettiest girl at the ball.
On Monday, Dollar General floated a deal valued at nearly $10 billion in a bid to steal Family Dollar away from rival Dollar Tree, the New York Times reported.
The move came less than a month after Dollar Tree proposed its $8.5 billion takeover of Family Dollar.
The bidding war offers strong evidence that cheap goods are big business.
Dollar General’s new deal offers an awful lot: The company would pay $78.50 per share in cash, compared to Dollar Tree’s $74.50, as well paying the $305 million break-up fee that would be owed to Dollar Tree should Family Dollar back out.
As the Times noted, the combination of Dollar General and Family Dollar would be a bargain behemoth, with nearly 20,000 stores and $28 billion in annual revenue.
The combination of Dollar Tree and Family Dollar, on the other hand, would create a smaller, 13,000-store, $18 billion-a-year empire.
The announcement boosted stock prices for both Dollar General and Family Dollar, as Forbes noted, while the one-upped Dollar Tree’s shares tumbled:
Following the announcement, shares of Dollar General were up 11.6% in pre-market trading to $64.10. Family Dollar shares were up 4.9% to $79.75. And Dollar Tree shares were down 1.5% to $54.80.
As the Times has previously reported, discount stores including Dollar General, Dollar Tree and Family Dollar have thrived in the years since the 2008 financial crisis as consumers spend more cautiously.
Follow Zach Noble (@thezachnoble) on Twitter
From the breaking news you need to know to the hottest trends circling the Web, TheBlaze has it all. Follow us on Facebook, Twitter, Instagram, Snapchat and Periscope.