UK competition watchdog clears Poundland-99p stores deal

Britain's competition watchdog said it was minded to approve Poundland's acquisition of rival 99p Stores, after it discounted fears the combined 800-strong group would dominate the value market. The Competition and Markets Authority (CMA) undertook a lengthy review of the deal, announced in February, on concerns it could lessen competition in certain areas through a possible reduction in quality, fewer promotions or closure of stores.
But it said on Tuesday the stores, which sell items at one pound and 99 pence respectively, would still face competition from other value retailers such as B&M, Home Bargains, Wilko and Bargain Buys, along with Tesco and to an extent Asda. "We do not think customers will be worse off from the merger," the CMA said. Poundland's Chief Executive Jim McCarthy welcomed the provisional clearance. "We continue to believe that the acquisition of 99p will be great for customers and for shareholders alike," he said. Poundland had considered scrapping its agreement to buy the chain from owner the Lalani family because of the investigation.