Carphone and Dixons to reveal £3.7bn merger

 
Oliver Smith
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DIXONS Retail, the owner of Currys and PC World, and Carphone Warehouse will this week announce the final terms of their proposed £3.7bn merger in a deal that is expected to create a new FTSE 100-sized business from the two high street technology retailers.

The companies are understood be planning to unveil details of their tie-up alongside Dixons’ trading update on Thursday morning, ahead of the extended deadline set by the Takeover Panel of 19 May.

The deal, first revealed by Sky News, is expected to be a merger of equals, with Dixons boss Sebastian James becoming chief executive and Carphone Warehouse’s founder Sir Charles Dunstone taking over as chairman of the combined group.

James has made no secret of wanting to step up the company’s exposure to mobile phones.

Talks are understood to have started after the pair discussed putting Carphone Warehouse outlets within Dixons’ stores, replacing its agreement with Phones4U. The new company, which is considering the name Dixons Carphone Group, would have a powerful presence across European high streets with about 2,900 stores.