Carphone Warehouse and Dixons are expected to reveal a £3.6bn merger deal on Thursday, to become the UK’s biggest electronics retailer.
Following months of discussions, the two retailers are expected to unveil a “merger of equals” partnership. Both companies’ market values are at the £1.8bn level. The deal will see the new combined company become a FTSE 100 firm, with Carphone Warehouse founder Sir Charles Dunstone as chairman and Dixons chief executive Seb James taking the same role in the combined group.
The merger is expected to be unveiled on Thursday, when Dixons updates the market on its fourth-quarter trading, ahead of the Takeover Panel on May 19. The combined firm will be known as Carphone Dixons plc, but the exiting retail brands will not be affected.
The boards will be slimmed down as a result of the merger, but Carphone Warehouse chief executive Andrew Harrison is understood to be taking on the role of deputy chief executive, with Roger Taylor, Sir Charles’ right-hand man, set to be deputy chairman, along with Dixons’ current chairman, John Allan.