17th Apr 2015 14:24
LONDON (Alliance News) - Poundland Group PLC Friday said it is still considering whether or not to go ahead with its GBP55 million deal to acquire its rival 99p Stores, after competition authorities referred the move for a so-called Phase II review earlier this month.
In a statement, Poundland said it has asked the Competition and Markets Authority to suspend the beginning of that investigation for three weeks while it decides on whether to proceed with the review or to withdraw from the deal.
The acquisition of 99p Stores was referred for a Phase II review after Poundland decided against offering concessions to the CMA to abate concerns that the deal could be bad for competition.
The CMA's initial probe into the deal found that it "gives rise to a realistic prospect of a substantial lessening of competition".
Poundland shares were down 1.5% at 335.94 pence on Friday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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