UK HIGH STREET techno-gewgaw sellers Dixons and Carphone Warehouse are merging to create one huge shopping retailer to serve all of your electronics and mobile phoney needs.
The firms will embrace under the name Dixons Carphone and a smattering of positive talk. Industry, shareholders, the UK, punters and the two companies are set to benefit, they said.
The heads of both firms trilled happily about the move. "We are incredibly excited about the opportunity today's news brings to our organisations, our consumers and our investors. Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world," said Sir Charles Dunstone, chairman of Carphone Warehouse.
"We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age. We are also creating jobs and we see many opportunities for further growth. This is a new chapter for both businesses.
The conditional merger will create a firm with around 3,000 retail outlets and a chunk of the French mobile market. The two firms estimated that the happy marriage will save the outfits around £80m a year, within a couple of years. Benefits, or 'synergies' are expected to start showing from 2015.
"This merger will create a new, world class British retailer for the new digital age, with new opportunities for growth and greater scale and reach. Colleagues of both complementary businesses are experts in their fields, with a shared passion for technology, connectivity and brilliant service," added John Allan, chairman of Dixons.
"Coming together when both companies are flourishing, we will create a stronger business for our customers, colleagues and shareholders - for now and the future."
Rival firm Phones 4u is not what you could call keen on the deal, and its CEO expressed disappointment at the news. Phones 4u has a presence in Dixon stores, but that ends next year. Phones 4u CEO David Kassler expects to take any losses on the chin.
"I am naturally disappointed that Dixons Retail has chosen to go down this route. I believe Phones 4u has been a strong, proactive partner for Dixons over the last three years and we will continue to add value and mobile expertise in our current Dixons Retail outlets throughout the remainder of our contract, which has a year left to run," he said.
"The Phones 4u-Dixons store-in-store arrangement delivered less than 10 percent of our overall turnover and so the financial impact at the end of the contract will not be significant to our business." µ
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