Poundland has announced it wants to buy discount rival 99p Stores for £55 million, subject to clearance by competition authorities.
The budget retailer Poundland, which has previously expressed an ambition to double its UK and Ireland network of more than 500 stores, said the two firms have signed a conditional deal for £47.5 million in cash and £7.5 million in stock.
The sale, should it go through, will see Poundland take ownership of 251 stores which trade as 99p Stores and Family Bargains, as well as the group's warehouse and distribution centre which would all come under the Poundland brand over time.
The deal is subject to approval by the Competition and Markets Authority (CMA).
Poundland chief executive Jim McCarthy said: "Through working together, Poundland will improve choice, value and service for 99p Stores' customers, bringing Poundland's proven know-how and range to 99p Stores."
