UK retailers Carphone Warehouse and Dixons to announce £3.7bn merger
Carphone Warehouse and Dixons are set to announce a £3.7bn merger that will create one of the biggest high street technology groups in Britain. Further details regarding the merger will be made available to a Takeover Panel ahead of the May 19 deadline.
The merger will create a new organization that will focus on mobile phones and electrical goods. While a name has not been finalized by both companies' boards, it is believed that the new entity will be called Dixons Carphone Group plc.
Both companies will enter into a merger of equals, which means that Carphone Warehouse's 800 stores will be merged with Dixons' 500 retail outlets. Sir Charles Dunstone, co-founder of Carphone Warehouse, is poised to become the chairman of the combined group, while Dixons executives Sebastian James and Humphrey Singer will serve as chief executive officer and chief financial officer respectively.
An unnamed source revealed to Sky News that the merger would follow a round of lay-offs at both companies' head offices, and that there is a possibility that a new location would serve as the head office.
Source: Sky News