UK
06/02/2015 03:59 GMT | Updated 06/02/2015 09:59 GMT

Poundland Reveals £55 Million Deal To Buy 99p Stores In Huge High Street Shakeup

A Poundland shop in Glasgow, Scotland, as the campaign ahead of the Scottish independence referendum enters its final days.
Danny Lawson/PA Wire
A Poundland shop in Glasgow, Scotland, as the campaign ahead of the Scottish independence referendum enters its final days.

Poundland is set to buy rival 99p Stores in a £55 million cash and shares deal, in a move that has set Britain alight with jokes about how much the retailer is paying for its rivals.

Well, one joke in various forms.

The high street shakeup will see 99p Stores become Poundland shops over time.

Poundland, which floated on the stock market last year, will also pick up a warehouse and distribution centre in the transaction.

But many were 'surprised' that Poundland was paying more than 99p, as may be expected for the single price retailer.

But the lack of comic material certainly didn't stop people trying.

Or written another way...

Ok, this one is a little different.

There was even a little outrage.

Anyway, here's the actual business behind the deal...

Chief executive Jim McCarthy said: "This is a good deal for both businesses and will benefit customers and shareholders.

"Through working together, Poundland will improve choice, value and service for 99p Stores' customers, bringing Poundland's know-how and range to 99p Stores."

Family-run 99p Stores was founded by Nadir Lalani with a single site in Holloway, north London, in 2001, helped by sons Hussein and Faisal, before opening a further three stores later that year.

It has grown rapidly in recent years following the demise of Woolworths in 2008 as bargain retailers have become regular fixtures in UK high streets.

Poundland is paying £47.5 million in cash plus £7.5 million in new shares. The deal will be partly funded by a share placing.

The firm said the deal was dependent on the approval of the Competition and Markets Authority (CMA) and talks with the regulator have already been held.

Poundland describes itself as Europe's largest single price value retailer. It has opened nearly 600 stores in the UK, Republic of Ireland and Spain since 1990 - trading in the latter two countries under the Dealz brand.

Representatives of the single price giant confirmed to The Huffington Post UK they plan to slowly turn all 99p Stores into Poundland shops over time.

So rush out and get some of these deals while you still can:

Photo galleryValentine's Day: Poundland vs. 99p Stores See Gallery