Carphone Warehouse and Dixons are set to merge after the boards of the two retailers agreed to a tie-up that will create hundreds of new jobs.
The new entity will be called Dixons Carphone and the pair claim that cost savings under the deal will reach as high as £80m.
“The boards of Carphone and Dixons recognise that in order to achieve the expected benefits of the merger, operational and administrative restructuring will be required following completion,” said the statement.
A spokeswoman for consumer electronics specialist Dixons stated that though there would be more jobs on a net basis across the whole merged business, some roles at the headquarters would be at risk as a result of the deal.
The deal will be made on a 50-50 basis with Dixons and Carphone Warehouse merged as equals.
The chief executive of Dixons Carphone will be Sebastian James, who is currently boss of Dixons. Carphone Warehouse chief executive Andrew Harrison will be James’s deputy.
Sir Charles Dunstone, Chairman of Carphone said:
“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.
“We are also creating jobs and we see many opportunities for further growth. This is a new chapter for both businesses and we are energised and proud to be part of what will be another fantastic journey for consumers and shareholders.”
Dixons chairman John Allan 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.”
[signoff predefined=”Enjoy this?” icon=”icon-users”][/signoff]
