UK discount retailer Poundland’s deal to buy rival 99p Stores is being investigated by the competition authorities, putting the agreement in jeopardy.
Earlier this month, the Competition and Markets Authority (CMA) said that the deal could potentially result in a lessening of competition in the sector.
In a statement, Poundland said: “After careful consideration, Poundland has decided not to offer remedies to the CMA. The CMA has announced today that the merger will therefore be referred for a Phase II review. Poundland has written to the CMA to request the standard three-week suspension of the commencement of that Phase II review. During this period, Poundland will continue to consider carefully whether to proceed with a Phase II review or to withdraw from the proposed transaction.”
