UK company Carphone Warehouse and Dixons Retail have agreed a £3.8 billion proud ($6.38 billion) all-share merger, creating a powerful pan-European mobile phone and electrical group with approximately 2900 stores, Reuters reports.
Carphone Warehouse, Europe’s biggest independent mobile phone retailer, and Dixons, Europe’s number two electrical retailer, have said the deal will be implemented by way of a scheme of arrangement of Dixons.
The merger would result in each of Dixon’s and Carphone’s shareholders holding 50 percent of the new group, to be named Dixons Carphone Plc.
Under the terms of the merger, Dixons shareholders will receive 0.155 of a new Dixons Carphone share in exchange for each Dixons share.
This week, Carphone had a market capitalisation of £1.90 billion and Dixons £1.87 billion, based on their closing prices.