Dixons and Carphone Warehouse have agreed terms on a £3.8 billion merger.
This will create an electrical retailer with about 2900 European stores.
Carphone Warehouse is the biggest independent retailer of mobile phones in Europe and Dixons is the second largest European electrical retailer. The newly formed retail stores will be named Dixons Carphone Plc. The deal was entered because of the market share the two companies have and in view of the increase of consumers’ use of multiple devices in normal everyday life.
Dixon’s boss, Sebastian James, will become the chief executive and Sir Charles Dunstone, the co-founder of Carphone Warehouse will retain 23.5% of the shares and will be named chairman of the merged companies.
The merger still requires 75% approval from all shareholders due to the scheme of arrangement structure. There is expectation that the merger will show a saving of £80m per annum by 2017/2018. Almost 50% of the savings are expected to be reached during 2015/2016. No stores closures are expected.
19 MAY 2014, USA