Sunshine and Showers

Sunshine and Showers

max temp: 7°C

min temp: 3°C

Search

UK: Dixons Carphone to start trading

PUBLISHED: 08:20 07 August 2014 | UPDATED: 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.

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.”

Search hundreds of local jobs at Jobs24

Sector leaders have their say on Theresa May’s Brexit deal

EDF Energy has announced the launch date for the third stage of the public consultation for a new nuclear power station on the Suffolk coast, Sizewell C.

The Ministry of Defence (MOD) has awarded a £160m contract to Kier VolkerFitzpatrick to get RAF Lakenheath ready for two squadrons of US F-35s.

A report has revealed the growing economic impact - including thousands of jobs - of an Ipswich-based business energy supplier.

A ground-breaking tech company that recently relocated from Cambridge to Suffolk has been working with University of Essex researchers on technology designed to make our online data safer.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24