Poundland agrees to £597m takeover

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

Steinhoff is paying 222 pence per share for the discount retailer. 

Steinhoff had made an informal approach for Poundland last month, but the offer was rejected.

Since 1990, Poundland has opened about 600 shops in the UK, Ireland and Spain. In September 2015, Poundland took over rival 99p Stores but has since seen a slowdown in sales.

Steinhoff owns Pep, a retailer with 1,800 stores across 10 countries in southern Africa that sells discount clothing, footwear and homewares. 

The group, which also also owns the UK furniture chain Harvey's, makes most of its products in developing countries, and sells its furniture across Europe.