Dixons and Carphone Warehouse announce 3.8bn-pound merger

After months of talks, Currys and PC World owner Dixons Retail and mobile phone group Carphone Warehouse have agreed on an all-share merger valuing the combined entity at 3.8bn pounds.The new company, to be named Dixons Carphone plc, is hoped to create a "world-class British retailer for the new digital age", offering consumer electricals, mobiles, connectivity and related services, the firms said on Thursday morning.The boards of both Dixons and Carphone have recommended the 'merger of equals' and expect the deal to deliver "significant value to shareholders through a combination of enhanced commercial opportunities and operating synergies".Dixons Carphone should be able to achieve integrated mobile retailing and procurement synergies, together with cost savings of at least £80m on a recurring basis, delivered in full in the financial year 2017/18, the companies said. These synergies will be delivered progressively with almost half of them expected to be achieved in 2015/16.Carphone's current Chairman Sir Charles Dunstone will become the Chairman of Dixons Carphone, while Carphone Deputy Chairman Roger Taylor and Dixons Chariman John Allan will become co-deputies. Meanwhile, Dixons' Chief Executive Officer (CEO) Sebastien James will run the new company, with Carphone CEO Andrew Harrison becoming his deputy."We are incredibly excited about the opportunity today's news brings to our organisations, our consumers and our investors," Dunstone said in a statement."Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world. We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age."BC