Poundland says happy to proceed with 99p regulatory review

The group had previously said it may walk away from its planned 55 million pounds ($84 million) deal rather than be subject to a lengthy probe by the British competition watchdog.

It said on Wednesday however that it had changed its mind and was confident that the combination of the two businesses would provide better choice, value and service for 99p Stores' customers.

Britain's Competition and Markets Authority (CMA) said in April the agreed deal could result in a substantial lessening of competition and would be subject to a further investigation in the absence of undertakings, such as selling some stores.

($1 = 0.6578 pounds) (Reporting by Kate Holton; Editing by Li-mei Hoang)