Dixons and Carphone Warehouse poised to announce merger: report
Dixons Retail and Carphone Warehouse are reportedly all set to sign a merger agreement that would create one of UK's biggest high street groups.
Citing anonymous sources, Sky News has reported that Dixons and Carphone would likely make a statement outlining concrete details of their merger before a Takeover Panel cut-off date of May 19.
Carphone co-founder Sir Charles Dunstone will be the chairman of the merged entity, while Dixons' chief executive officer Sebastian James and chief financial officer Humphrey Singer will occupy the top two executive roles.
Carphone CEO Andrew Harrison will become deputy CEO, while Carphone's deputy chairman Roger Taylor and Dixons Retail chairman John Allan will become deputy chairmen of the new group.
The market value of Carphone is marginally higher than that of Dixons, but the transaction will be structured as a fifty-fifty merger of equals.
The merged company might set up its head office at a new location rather than moving to either Dixons or Carphone's existing head office. A person familiar with the deal also warned that there could be some head office job cuts.
Sources also revealed that the merged entity would likely be called Dixons Carphone Group plc, though the two companies' boards haven't formally finalized the name yet. The new company would have a powerful presence across Europe, with a network of as many as 2,900 stores.