UK retailers Carphone Warehouse and Dixons have reached agreement on an all-share merger, giving each 50 percent in the new company Dixons Carphone. Dixons shareholders will receive 0.155 shares in the new company for each share of Dixons they hold. The two companies, which first announced the merger talks in late February, said they expect at least GBP 80 million in annual synergies from the integration of their operations. Half of this should be achieved by fiscal year 2015/16 and the total by 2017/18.
Carphone chairman Charles Dunstone will continue as chairman of the new group, and Dixons' Sebastion James will stay on as CEO. Andrew Harrison, CEO of Carphone, will become deputy CEO, and Humphrey Singer, CFO of Dixons, will become CFO. The companies said they aim to create a leader in European consumer electricals, mobiles, connectivity and related services. Completion of the merger remains subject to shareholder and regulatory approval.
