Companies set to confirm merger that will create one of the UK’s biggest retailers
Carphone Warehouse and Dixons are expected to confirm a £3.7 billion merger deal later this week.
The firms announced they were in discussions earlier this year and will make a statement to confirm their intentions before a takeover Panel deadline on May 19, according to Sky News.
The broadcaster says the new name of the combined firm is likely to be Dixons Carphone Group and it will be structured as a 50/0 merger, despite Carphone’s slightly higher market capitalisation.
Carphone founder, Sir Charles Dunstone will become chairman of the new firm, with Dixon’s Sebastian James and Humphrey Singer taking on the roles of chief executive and chief financial officer respectively.
Regulatory approval is unlikely to be a problem with analysts telling Mobile News that the lack of product crossover between the two company’s means there isn’t any anti-competition issues. The lack of crossover also means that job cuts are expected to be restricted to head office staff.
The deal would freeze out Phones 4u which has been operating concessions stores in Dixon’s estate of Curry’s stores for a number of years.
The mobile retailer operates 800 stores in the UK while Dixons has an estate of around 500 stores across its brands, Currys and PC World.