Carphone Warehouse and Dixons press ahead with £3.8bn tie-up
Three of Britain’s best known brands; Currys and PC World (owned by Dixons Retail) and Carphone Warehouse have announced they are to merge in a deal valued at £3.8bn.
The deal will see ownership of the two firms split evenly between shareholders of the two firms, marrying 500 Currys and PC World stores in the British isles with 2,000 European Carphone Warehouse outlets.
At the same time Dixons announced growth in underlying and like-for-like sales of 3 per cent and estimated its full year profits at between £150 and £160m.
John Allan, CBE, chairman of Dixons added: "This merger will create a new, world class British retailer for the new digital age, with new opportunities for growth and greater scale and reach. Colleagues of both complementary businesses are experts in their fields, with a shared passion for technology, connectivity and brilliant service. Coming together when both companies are flourishing, we will create a stronger business for our customers, colleagues and shareholders - for now and the future."
Kester Mann, principal analyst, operators, CCS Insight commented: “We're about to see our digital lifestyle extending out of the living room into the rest of the home. Eventually, almost everything will be connected; ovens, toasters, cameras, washing machines, fridges, lights, alarm systems and so on. Many of these devices will be controlled by our smartphones and tablets. So a merger between a consumer electronics retail giant and one of the high street's leading mobile distributors is a logical and forward-thinking move for both companies.”