Dixons Retails and Carphone Warehouse have announced the two companies will combine in a £3.8 billion merger.
Following the merger, the two companies will be known as Dixons Carphone, with the companies existing as a 50 – 50 split ownership for existing shareholders.
The deal has been in discussion for some time, and the original plans were outlined in February.
Dixons currently has over 500 Currys and PC World stores across the UK and Ireland and Carphone Warehouse has a staggering 2,000 stores spread across Europe.
Both companies have confirmed that there will be no store closures following the merger.
However, there will be some effects on existing staff though. Dixons confirmed there would be job cuts of around 2 per cent for the new merged company, “as a results of the rationalisation of certain operational and support functions.”
“Today we also 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,” said Dixons Chief Executive Sebastian James. “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.”
The merger is expected to save the two companies £80 million per annum from the fiscal year 2017 – 2018.
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