British retailer Poundland has announced that it is looking to buy out the slightly cheaper alternative 99p Stores for a proposed £55m.
The two companies have already agreed a conditional deal of £47.5m up front with a further £7.5m in stock. They are now awaiting regulatory approval from the Competitions and Markets Authority (CMA).
The 251-strong network of 99p Stores, which also includes Family Bargains, will be converted to Pundland if and when the deal goes through.
Jim McCarthy, Poundland chief executive, says that this represents a good opportunity for everyone involved.
"This is a good deal for both businesses and will benefit customers and shareholders," he 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. We also believe that we can improve the performance of the 99p Stores estate and generate further value for Poundland's shareholders."