The owner of the Currys and PC World brands, Dixons Retail, and mobile phone retailer Carphone Warehouse have announced they are to merge in a deal worth £3.8 billion. Dixons operates electronics and appliances stores mainly in the UK and Northern Europe, while Carphone Warehouse operates more than 2,000 cellphone stores across Europe. The all-share merger, brings together two of the UK's biggest retailers to create a company valued at more than £3 billion.
The new firm will be known as Dixons Carphone, with ownership to be split equally between the two firms' existing shareholders. Carphone Warehouse Chairman Charles Dunstone will be chairman of the new company.
The CEO of Dixon's Sebastian James, who will be Dixon Carphone's chief executive commented: "Today we announce that we are setting out on a new journey with Carphone Warehouse and it is good to be in such a strong position as we embark on this adventure. 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."
Speaking on the BBC James (pictured) drew attention to the ultimate goal of the merger – to prepare for the arrival of the 'internet of everything' through which it is becoming possible to monitor and control domestic appliances of all kinds, sold by Dixons, remotely from mobile devices sold and connected by Carphone.
Carphone Warehouse said significant job creation was expected as part of the deal, "resulting in an increase of approximately four percent." However, some existing staff will be affected. Dixons said there would be job cuts of two percent in the merged company, "as a result of the rationalisation of certain operational and support functions."
