(MENAFN- ProactiveInvestors) () has kept its pursuit of 99p Stores alive by inviting authorities to conduct a full-review into the proposed tie-up.
The discount chain wants to buy its closest rival in an agreed deal worth £55mln.
However in its Phase 1 review the Competition and Markets Authority (CMA) said that this could lead to a "substantial lessening of competition” in 80 areas where the two chains overlap.
As a result may have to close 80 stores and initially warned it might scrap its bid but today it told investors that it has rejected the CMA’s suggestion to re-think the deal.
It now wants the watchdog begin a full review or Phase II which is an in-depth 23-week study of the deal.
Boss Jim McCarthy said he “remains confident” that the merger will provide better choice value and service for 99p Stores' customers and represents a great deal for stakeholders in both businesses.
Broker Cantor Fitzgerald said Phase 2 lasts six months and company will be “hoping for less onerous remedies from those of Phase 1.”
“Shares likely to tread water therefore in our view” it added.
has been going for 25 years and floated on the stock market last year. It currently runs over 500 UK stores.
Shares were flat at 315p.
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