Overcast

Overcast

max temp: 14°C

min temp: 13°C

ESTD 1874 Search

UK: Dixons Carphone to start trading

08:20 07 August 2014

Dixons Carphone of from left to right: Humphrey Singer (Group Finance Director) Andrew Harrison (Deputy Group Chief Executive) Sebastian James (Group Chief Executive) Sir Charles Dunstone (Chairman).

Dixons Carphone of from left to right: Humphrey Singer (Group Finance Director) Andrew Harrison (Deputy Group Chief Executive) Sebastian James (Group Chief Executive) Sir Charles Dunstone (Chairman).

A new era in consumer electronics begins today when Carphone Warehouse and the owner of Currys and PC World join forces under a £3.9 billion merger.

shares

The new name of Dixons Carphone will begin trading on the London Stock Exchange and feature 3,000 stores from the businesses of Dixons Retail Group and Carphone Warehouse.

Dixons Carphone, which employs around 43,500 staff across Europe, aims to tap into the way technology will transform households by fusing the mobile phone and electrical goods sectors in what is called the “Internet of Things”.

The firm will look to adapt to a new world where smartphones, tablets and rapid internet speeds will mean appliances such as washing machines and fridges are controlled by the touch of a mobile device.

Such a retail behemoth would be expected to have more power to stand up to online competition from electrical retail rivals such as AO World.

Dixons chief executive Sebastian James will run the new group, while Carphone founder Sir Charles Dunstone, will be its chairman.

When the merger was announced in May, Mr James said: “The ability to take what we have built in electrical retailing and add the profound expertise of Carphone Warehouse in connectivity would make us a leading force in retailing for a connected world.”

The merger is expected to deliver combined yearly savings of £80 million although there will be restructuring costs of £55 million to £60 million and extra investment of £70 million to £80 million.

Carphone Warehouse was founded by Sir Charles in 1989, and has around 2,000 stores, including more than 800 in the UK. Dixons, founded in the 1930s, has 943 stores in seven countries, including more than 500 in the UK.

Carphone’s high street presence is not seen as overlapping with Dixons’s out-of-town stores by analysts, so the two sets of shop portfolios are seen as complementary.

The combination of the two FTSE 250 firms is likely to create a new FTSE 100-sized group, as well as merger savings to please investors.

Independent analyst Louise Cooper said at the time of the merger deal that there was “likely to be much scepticism” about plans for better growth through putting the businesses together.

She said: “Two past their sell-by date retailers merging does not an Amazon make.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

State-backed Lloyds Bank reported a better-than-expected 21% rise in underlying profits to £2.18 billion for the first quarter.

State-backed Lloyds Banking Group has reported a better-than-expected 21% rise in underlying profits to £2.18 billion for the first quarter as it said it benefited from the improving economy.

Challs MD Graham Burchell

A drain cleaning products company celebrating its 25th anniversary is marking the milestone with new branding.

Isaacs on the Quay

The manager of a popular waterfront bar has moved to allay fears a new licensing application could mean an increase in late night noise.

Penny Teale is to convert part of her Orford General Store into two new flats.

A village shop owner has explained the reasons why she has had to downsize her store and will convert the rest of the building into apartments.

A decision by the European Court of Justice (ECJ) means that 3,200 ex-employees of Woolworths and 1,200 former staff at Ethel Austin will not receive any money.

Thousands of workers at high street stores which went out of business have lost a long battle for compensation.

Post-Christmas boost for BA’s owner

Thursday, April 30, 2015
The owner of British Airways has forecast a big jump in profits this year as it benefits from the

The owner of British Airways has posted a profit in the post-Christmas quarter for the first time since it acquired Spanish carrier Iberia in 2011.

Shell profits slump after oil slide

Thursday, April 30, 2015
Shell has been hit by the fall in oil prices.

Royal Dutch Shell has reported a 57% slump in first quarter profits after it was hit by the fall in oil and gas prices.

Solar farm. Library image.

Plans for a third solar farm in Wix have been given the green light by councillors.

Richard Turner said £70million in wages would be spent in Stowmarket if the business park was given the go-ahead.

Outline planning permission for a 29 hectare business site has been approved by Mid Suffolk District Council.

Royal Bank of Scotland  slumped to a loss of £446million in the first quarter.

State-backed Royal Bank of Scotland slumped to a loss of £446million in the first quarter, it revealed today.

Most read

Most commented

Topic pages