Poundland signs up to competition authority review

DISCOUNT retailer Poundland has given its backing to a competition authority review into its proposed takeover of rival 99p Stores.

In April the Competition and Markets Authority (CMA) said it was going to look into the Wednesbury retailer’s proposed £55m takeover of its Northamptonshire-based rival.

The CMA said it is taking the proposed deal to the next level by mounting an in-depth phase II investigation.

Poundland said it was unhappy about the move and warned it may pull out of the acquisition. It said at the time it was exploring its options.

However, in a statement to the London Stock Exchange this morning, Poundland said it wishes to proceed with a phase II review.

“Poundland looks forward to working with the CMA in phase II,” it said.

“Poundland remains confident that the combination of the two businesses will provide better choice, value and service for 99p Stores’ customers and represents a great deal for all stakeholders in both businesses.”

Jim McCarthy, chief executive of Poundland, said: “We look forward to working with the CMA in phase II in order to ensure that we can deliver an improvement in choice, value and service for 99p Stores’ customers.”