Poundland agrees to probe by authorities into 99p Stores deal
POUNDLAND said yesterday it has agreed to proceed with a full-scale investigation by the competition watchdog over its proposed £55m tie-up with 99p Stores.
The bargain chain said last month that it was considering whether to continue to pursue the deal or walk away after the Competition and Markets Authority (CMA) raise concerns over 92 areas where it believed a merger could create “a realistic prospect of less competition”.
It said a successful deal would mean the newly formed group had just one main competitor, Poundworld, alongside other discount retailers such as B&M, Home Bargains, Wilko and Poundstretcher.
“Since then, Poundland has considered its options carefully and today announces that it wishes to proceed with a phase two review,” it said in a statement yesterday.
“We look forward to working with the CMA in phase two in order to ensure that we can deliver an improvement in choice, value and service for 99p Stores’ customers,” chief executive Jim McCarthy, said.
Poundland, which reached £1bn sales last year, revealed plans to buy the rival discount chain in February. The group has about 600 stores while 99p has around 250 which produce around £370m in annual sales.