South African retailer Steinhoff International has bought discount chain Poundland in a £597m deal.
It is paying 222p per share for the discount retailer.
The Poundland deal marks Steinhoff’s first acquisition success in Europe this year. The firm previously tried and failed to buy French retailer Darty and Argos owner Home Retail Group.
Steinhoff is keen to grow a “price-led” retail business across the UK and Europe. It already owns more than 40 brands spread across 6,500 stores in 30 countries worldwide, including Bensons for Beds and Harveys in the UK.
Poundland has more than 750 shops in the UK, Ireland and Spain. The firm recently announced a double-digit fall in pretax profits, down 83% to £5.9m in the year to March 2016.
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