The Competition and Markets Authority (CMA) has cleared Poundland's proposed £55m takeover of the 250-strong 99p Stores chain.
News of the provisional go-ahead will be a relief to Poundland and is the latest announcement since the investigation was launched by the CMA in April. The conclusion of the CMA's phase one inquiry was that Poundland could be forced to sell off 80 stores, as well as 12 forthcoming ones for the deal to be agreed. The more positive result is the outcome of a more in-depth second phase, which included exit interviews with shoppers of both Poundland and 99p Stores.

In response to the CMA's investigation into the acquisition and claims that it would impact competition in the set price point (SPP) market and other discount retailers, Poundland said that it "considers that the merger will be pro-competitive - bringing a superior proposition to 99p Stores' customers, and further enhancing competition along the High Street".

It explained that the deal will, in fact, have a bigger impact on larger retailers - particularly given the fact that Poundland sells more than 1,000 brands that are also stocked by supermarkets and other general merchandise retailers. It added: "By contrast the merged entity will be a more effective competitor to some of Britain's largest retailers, to the ultimate benefit of consumers."

Family-run business 99p Stores Ltd has grown at a significant pace over the past decade, opening 200 stores between its launch in 2001 and 2012. It now operates 216 stores under the '99p store' brand, as well as 34 stores with different ranges and pricing models under the 'Family Bargains' and '99p Plus' brands
The majority of its stores are located in the south of England. In FY13/14 99p Stores Ltd reported a turnover of more than £370m.

It was revealed that 99p Stores approached Poundland about a possible deal in May last year before the sale of £55m was agreed by shareholders in February 2015.

Europe's largest discount retailer, Poundland operates 547 stores in the UK and an additional 41 stores in the Republic of Ireland and seven in Spain under the Dealz brand. The company expects to meet its stated objectives of adding at least 60 net new stores to its estate across the UK and Ireland by year end 2015. Turnover at year end to March 29, 2015 was £1,117m, with pre-tax profits of £36.2m