Partly Cloudy

Partly Cloudy

max temp: 18°C

min temp: 11°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

EADT BUSINESS

Chris and Hayley Lee, pictured outside The Bildeston Crown

PICTURE CONTRIBUTED 

EADT 20/9/07
EADT 22/12/07
EADT 25.4.09

A couple who held senior posts at a country hotel-restaurant when it won a clutch of awards has returned.

Holiday parks group Park Resorts is to merge with rival operator Parkdean.

The UK’s biggest holiday park operator is to be created through a £960million merger deal involving Parkdean and Park Resorts.

Matt Howard and Stuart Morton of chartered accountants and business advisers Price Bailey.

Twenty-four staff have lost their jobs at a Lowestoft department store which went into administration last month as urgent efforts continue to find a buyer for the business.

Halfords has reported a fall in bike sales over the past two months.
Photo: Newscast/Mathew Growcoot

Halford today reported a slump in bike sales over the last two months amid rainy weather and heavy discounting.

ASOS chief executive Nick Robertson, who is stepping down with immediate effect.

Online fashion retailer ASOS said today that its chief executive Nick Robertson is to step down with immediate effect from the helm of the company he founded 15 years ago.

BSP International Foundations, part of Tex Holdings plc of Great Blakenham, which has bought the assets and business of G & M Power Plant.

Nineteen out of 35 jobs at an electric generator manufacturer have been saved after its business and assets were bought out of administration on Wednesday.

Maria Peyman of Birketts with colleagues Katherine Shadbolt and Kitty Rosser.

Maria Peyman has joined the commercial litigation team at law firm Birketts as a senior associate.

Aga is at the centre of a takeover tussle after revealing US electronic appliances giant Whirlpool was considering a bid to rival Middleby's £129 million offer.

Upmarket cooker firm Aga Rangemaster is at the centre of a takeover tussle after revealing US electronic appliances giant Whirlpool was considering a bid to rival Middleby’s £129 million offer.

A Punch Tavern pub

Pub group Punch Taverns is set to post a slight fall in annual earnings as it continues to offload pubs to cut its debt pile.

Landmark House and Beacon House.

A facilities management business owned by Suffolk County Council is moving home and undergoing a re-brand.

Most read

Most commented

Topic pages