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Dixons and Carphone to Announce £3.7B Merger Next Week

by Todd Haselton | May 9, 2014May 9, 2014 11:00 am PDT

Carphone Warehouse Manchester - 1

The Financial Times is at it again with yet another huge merger story. Last night the news outlet revealed Apple’s intentions to acquire Beats Electronics and today it says it has learned that Dixons and Carphone Warehouse are set to announce a merger as soon as next week. The deal is said to be worth about £3.7 billion ($6.2 billion).

Financial Times said the plan is for a 50-50 merger, under which the founder of Carphone Warehouse’s stake is expected to fall from 23.5 percent of the company to about 11.75 percent. Sir Charles Dunstone founded the company in 1989 and also serves as the chairman of the TalkTalk Group in the United Kingdom.

Dunstone will apparently lead the new company as chairman while the current CEO of Dixons Retail, Sebastian James, will continue to stay on as the CEO. Financial Times said that the merger may result in Phones4U employees being moved over to Carphone’s retail outlets once an existing contract with Dixons and Phones4U expires next month.

The news outlet didn’t say whether or not the merger will result in a newly formed company with a different name, though presumably Dixons and Carphone Warehouse locations will continue to operate under those monikers.

FT

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Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...


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