Home Business News It’s here: £3.8bn mega-merger to create Dixons Carphone

It’s here: £3.8bn mega-merger to create Dixons Carphone

by LLB Reporter
15th May 14 9:02 am

Carphone Warehouse and Dixons Retail, which owns Currys and PC World, have been publicly talking about merging since February.

Today, they have announced their £3.8bn merger.

Read our analysis of the merger: This is the massive trick the newly merged Dixons Carphone will have up its sleeve (and Google knows it too)

The high-street electronics stalwarts will come together to form Dixons Carphone, a telco and electronics goliath that will boast sales just shy of £12bn and almost 3,000 stores.

The deal is a “merger of equals” in which the two companies’ respective shareholders will each own 50% of the new group.

Dixons said that the two companies will be saving £80m a year from 2017/18 in their merged form.

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Carphone Warehouse said it also expected “significant job creation” of around 4%, although Dixons cautioned that it would see 2% cuts.

Carphone Warehouse chairman Sir Charles Dunstone will be chairman of Dixons Carphone, and Dixons CEO Sebastian James will be CEO.

James said: “The ability to take what we have built in electrical retailing and add the profound expertise of Carphone Warehouse in connectivity would make us a leading force in retailing for a connected world.

“Together we can create a seamless experience for our customers that will enable technology to deliver what it promises – that is, to make their lives better.”

Read our analysis of the merger: This is the massive trick the newly merged Dixons Carphone will have up its sleeve (and Google knows it too)

 

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