Poundland boss ‘disappointed’ at competition regulator impeding 99p Stores buyout
Poundland chief executive Jim McCarthy has expressed his disappointment that its proposed £55m buyout of rival discount store 99p Stores has been impeded by the Competition and Markets Authority (CMA) .
Speaking to The Telegraph the boss said he was both “disappointed and surprised” by the intervention of the CMA in its proposed takeover which has seen it call a full-scale review of the proposed buyout.
The CMA has said it has competition concerns about the fact that there are multiple areas in which the two companies both have stores and therefore currently overlap.
There are also a further 12 areas in which they would be competitive in the future should the proposed buyout not go through.
The regulator has now said it will move to a more in-depth investigation if its concerns are not addressed in a “clear-cut manner” by the companies.
Poundland’s frustration at the deal’s stalling is said to stem from the fact the regulator has not considered its pool of competitors widely enough, according to The Telegraph.
The CMA has been assessing the takeover since February when it was initially announced.
Last month Poundland saw its latest ad campaign banned by the Advertising Standards Authority, which deemed its pricing claims that all items were £1 misleading.