Dixons and Carphone Warehouse are to create a new high street giant after agreeing terms on a £3.8bn merger, reports The Telegraph.
After two months of talks, Dixons, which owns Currys and PC World, and Carphone have confirmed a deal that will see the new company split 50/50 between shareholders in the retailers.
The new company will be called Dixons Carphone plc, with Sir Charles Dunstone becoming chairman and Sebastian James, the boss of Dixons, becoming chief executive.
The merger has been structured as a scheme of arrangement, meaning it will need 75pc approval from shareholders.
The retailers say they have identified £80m of cost savings but that the deal is about creating a “new retailer for the digital age”.
Dixons Carphone will have more than 1,000 stores across the UK.
The union will bring together two retail success stories both reliant on the ingenuity of entrepreneurs.
Charles Kalms opened his first Dixon Studios shop in Southend in 1937 with just £100. Sir Charles set Carphone up from his flat on London’s Marylebone Road in 1989, when the majority of the population had not seen a mobile phone.
Sir Charles said: “We are incredibly excited about the opportunity today’s news brings to our organisations, our consumers and our investors.
“Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service,product and advice around the connected world. We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age.
“We are also creating jobs and we see many opportunities for further growth. This is a new chapter for both businesses and we are energised and proud to be part of what will be another fantastic journey for consumers and shareholders.”
