Britain's competition regulator has formally cleared single price retailer Poundland's proposed €55m acquisition of smaller rival 99p Stores. 

The Competition and Markets Authority said it concluded that the merger may not be expected to result in a substantial lessening of competition. 

It said customers would not face a reduction in choice, value or quality of service as a result of the merger. 

The CMA's ruling confirms its provisional findings published in August. 

Welcoming the decision, Poundland said it would move to complete the acquisition by the end of September. 

It said further information on its plans for 99p Stores willbe given when it publishes interim results in November.

Poundland first made its move on privately-owned 99p Stores in February. 

The purchase will add about 250 stores to Poundland's existing 588 stores in the UK and Ireland, where it trades as Dealz.