Poundland sold in £597m deal to South African retail giant

Deal of the day

After months of negotiations, South African retail group Steinhoff has snapped up Poundland in a £597m deal.

Steinhoff hailed Poundland as a “complementary fit” as it eyes expansion in Europe.

The discount chain, which has seen profits falling, operates more than 900 stores across the UK, Ireland and Spain, and employs 18,000 people.

Steinhoff, on the other hand, has 40 retail brands under its belt including Bensons for Beds and Harveys in the UK.

Analysts reckon the fall in pound helped Steinhoff seal the deal.

“The weak pound makes this all the more attractive for the South African retailer,” said Neil Wilson, analyst at ETX Capital.

“Expanding its operations in Europe should act as a useful hedge against rand volatility and exposure to South Africa’s stagnant economy.”