NEW YORK (CNNMoney) -- Family Dollar has rejected a nearly $10 billion buyout bid from Dollar General, saying it's sticking with an agreement to merge with Dollar Tree for less money.
Family Dollar said in a statement that its board rejected the Dollar General bid "on the basis of antitrust regulatory considerations."
The Dollar General bid, at $78.50 per Family Dollar share, topped the offer from Dollar Tree of $74.50 per share, or about $8.5 billion.
Also, Dollar General offered all cash, as opposed to Dollar Tree's offer combo of cash and stock.
Family Dollar CEO Howard Levine said that the board's decision was unanimous and reaffirmed support for its pending merger with Dollar Tree.
A spokeswomen for Dollar General declined comment. The company's stock dipped on the news.
All three of the chains specialize in low-cost consumers goods.
Dollar General calls itself the largest discount retailer in the U.S., with more than 11,000 stores in 40 states.
™ & © 2014 Cable News Network, Inc., a Time Warner Company. All rights reserved.
Unemployment fraud frustrating employees
Millions of your tax dollars are paid to thieves each year. They're ripping off you and the government by filing fraudulent unemployment…
Injury after Jeep airbag explodes for no reason
The recall repair process is supposed to fix safety hazards, but in one recall the airbags are still going off for no reason.
American Laser Skincare suddenly closes
A nationwide laser hair removal office closed its doors abruptly surprising customers and employees who are out cash.
Grills rusting exposing flame to propane tank
Grillers across the country say their grill is a safety hazard. The Consumer Watchdog exposes the problem and gets the manufacturer to take action.
Restaurant shut down for roaches 2nd time
Roaches shut down a restaurant for the second time this year. The changes the owner says he is making.