LONDON - South African general retail group Steinhoff International has agreed a takeover of British discounter Poundland for around £597-million, the pair announced on Wednesday.
It comes after Steinhoff recently built up a 23.6-percent stake in Poundland.
"We believe that there is significant merit in bringing Poundland into Steinhoff's global network," Steinhoff chief executive Markus Jooste said in a joint company statement.
"Steinhoff is developing a fast-growing, price-led retail business across the UK and the rest of Europe. Poundland would be a complementary fit to this growth story," he added.
Poundland charges one pound for most single items which include mainly household products.
Discount chains boomed in Britain following the 2008 global financial crisis and remain popular, forcing supermarkets like Tesco to slash prices of similar products.