NEWS

Poundland’s offer to take over 99p Stores cleared by UK watchdog

Published on: 25th August 2015

The Competition and Markets Authority (CMA) have put aside fears that Poundland’s acquisition of rival 99p Stores would enable the 800-strong collaboration to dominate the value market.poundland480

A review of the deal took place in February after concerns that it would possibly reduce quality, offer fewer promotions and even lead to store closures.

Selling items at one pound and 99 pence, the stores would still face rivalry from other value retailers such as Home Bargains, Wilkinson and Bargain Buys as well as bigger chains such as Tesco and Asda.

“We do not think customers will be worse off from the merger,” the CMA said.

Poundland had considered scrapping its agreement to buy the chain from owner the Lalani family because of the investigation.

However Jim McCarthy, Poundland’s chief executive welcomed the provisional clearance.

He commented: “We continue to believe that the acquisition of 99p will be great for customers and shareholders alike.”

The CMA asked anyone wishing to respond to the findings to do so by September 16.

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