CMA writes shopping list over Poundland/99p deal
The Competition and Markets Authority has issued a shopping list of issues it is investigating around the planned merger of Poundland and fellow budget retailer 99p stores.
The two retail stalwarts, which try to outperform even the budget-savvy German chains such as Aldi and Lidl, are hoping to seal the deal for £55m.
The regulator is examining several broad areas:
- Pre-merger competition and whether there was likely to have been market consolidation, with 99p being absorbed into another group anyway.
- The increasing demand for budget retailers and changing shopping habits.
- Assessing the impact of the loss of competition at local and national levels.
The regulator will also consider the likelihood of new competitors joining the throng and whether any expanded chain would actually be better for consumers, such as offering increased competition to other retailers such as Tesco and Asda.