Carphone Warehouse and Dixons Retail have agreed a £3.8bn merger, creating a new mobile phone and electricals group. The annoucement follows two months of discussions between the two retailers.
The new pan-European consumer electronics group, which will be called Dixons Carphone, will enable Dixons to expand further into the lucrative mobile market across Europe. Carphone's smartphone and tablet expertise will add to Dixons Retail's knowledge of the consumer electronics industry.
Carphone Warehouse founder Charles Dunstone, who holds 23.5% of the business, will chair the combined group.
Dixons chief executive Sebastian James and chief financial officer Humphrey Singer will have the same roles at the combined group.
Andrew Harrison, Carphone’s CEO, will become deputy CEO. Roger Taylor, deputy chairman of Carphone, and John Allan, the Dixons Retail chairman, will become deputy chairmen.
Established in 1989, Carphone Warehouse now has around 2,000 stores in operation.
Meanwhile, Currys and PC World owner Dixons has about 900 stores with an enviable reputation built up since the 1930s.
Sir Charles Dunstone, chairman of Carphone Warehouse said: ‘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.’
The new group will create ‘new jobs’ and new opportunities across the UK and Europe.
‘This merger will create a new, world-class British retailer for the new digital age, with new opportunities for growth and greater scale and reach,’ said John Allan, chairman of Dixons.
Coming together when both companies are flourishing, he added, it will ‘create a stronger business’ for customers, colleagues and shareholders – ‘for now and the future’.
The two firms would have combined annual sales of more than £12bn with a market value of around £3.7bn.