UK retailers Carphone Warehouse and Dixons to announce £3.7bn merger

Carphone Warehouse storefront
By Harish Jonnalagadda on 7 May 2014 09:04 am EDT
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Carphone Warehouse and Dixons are set to announce a £3.7bn merger that will create one of the biggest high street technology groups in Britain. Further details regarding the merger will be made available to a Takeover Panel ahead of the May 19 deadline.

The merger will create a new organization that will focus on mobile phones and electrical goods. While a name has not been finalized by both companies' boards, it is believed that the new entity will be called Dixons Carphone Group plc.

Both companies will enter into a merger of equals, which means that Carphone Warehouse's 800 stores will be merged with Dixons' 500 retail outlets. Sir Charles Dunstone, co-founder of Carphone Warehouse, is poised to become the chairman of the combined group, while Dixons executives Sebastian James and Humphrey Singer will serve as chief executive officer and chief financial officer respectively.

An unnamed source revealed to Sky News that the merger would follow a round of lay-offs at both companies' head offices, and that there is a possibility that a new location would serve as the head office.

Source: Sky News

Reader comments

UK retailers Carphone Warehouse and Dixons to announce £3.7bn merger

18 Comments

Wow more great news for customers.

Although UK companies don't try to find ways to F*ck you quite like American companies do.

So just maybe it might actually help customers?

Posted by Antoniius via my sexy white Q10.

Industry consolidation never helps consumers. Always the opposite. There is less incentive to be competitive.

Posted via CB10

Completely agree. They only merge so there is less competition. Which means prices for customers will eventually double.

Posted by Antoniius via my sexy white Q10.

More buying power though.

Whether they actually pass it on to us consumers is in another book.

Zzzzwiped from a Zedevice....

True Prem only thing is they usually don't pass it on to the customer. It goes to make them more rich and powerful.

Posted by Antoniius via my sexy Gold and White Q10.

I would agree with you if both firms were competitors but that is not the case. Carphone warehouse compete with carriers and others like phones4U etc Dixons focuses on electronics and competes with the likes of Currys/PC world etc

Posted via CB10

Most of you are right but you all miss the big picture. Carphone Warehouse has 800 stores and Dixons have 500. What should that tell you??? That's 300 less stores which means 300 store employees will be out of a job.
Now that's the big pic here.

Z10 Post.....

Dixions Retail own Curry's and PC World, which were merged into one store in some places. In a lot of these stores Phones 4 U have also started operating smaller stores. Which are in competition with Carphone Warehouse. So it will be interesting to see how this merger effects this agreement.

Posted via CB10

The agreement with phones 4 u is soon up for renewal, which I guess now will not transpire.

It is good news, especially as carriers have been squeezing the independents and over the years Carphone has been less competitive with carriers opening up their own stores.

Dixon has a fantastic on line presence.

 Posted by the Crackberry Pirate 

All this is only relevant if they plan to support BlackBerry by selling their products through their many stores here in the U.K. Up until now, it's been very hit and miss with support.

Posted via CB10

I think this is bad for BlackBerry as I can just see bundles being a big part of what they will be selling. If that is the case then BlackBerry will suffer.

Z10 addict, waiting for the next flagship Z...

I like mergers of equals.
Today I heard a CEO talk about a merger of egos.
He meant a merger of equals ("entre égaux") but said of egos ("d'égaux"). Very funny.

Well this probably means CPW prices will go up. Dixon group has never really been about best deals. Lol

Posted via CB10

Dixons don't have any retails outlets in the UK. They have Curry's and PC World.
The parent company was formally known as DSG International plc, now it's Dixons Retail.

Who researched the story? And why is it on CrackBerry?