Poundland agrees to £597m takeover by South African retail group

Discount chain Poundland has agreed to a £597m takeover by South African retail group Steinhoff International. Credit: PA

Discount chain Poundland has agreed to a £597m takeover by South African retail group Steinhoff International.

The Willenhall-based company accepted the 222p-a-share bid after rejecting a cash offer from Steinhoff last month.

The deal comes after Steinhoff recently lost out in a battle with Sainsbury's to buy Argos owner Home Retail Group in March. They were also outbid for London-listed white goods retailer Darty.

  • Steinhoff owns UK furniture firm Harveys and Benson for Beds

They can now no longer claim every item it sells costs £1 following the ruling. Credit: PA

Last year Poundland hit the headlines after a watchdog upheld complaints that it sold DVDs and other "special offers" for more than £1.

They can now no longer claim every item it sells costs £1 following the ruling.

Read more: Poundland can no longer claim every item costs £1 after complaints upheld