Under the terms of the deal the new merged entity will be called Dixons Carphone, with ownership split equally between the two firms' shareholders.
Dixons, which operates more than 500
In February, the two firms had disclosed that they were in talks about a tie-up.
"Carphone and Dixons are both experienced operators with significant knowledge and expertise. The integration of the two businesses will be managed by a dedicated integration team, bringing together the best relevant capabilities of both businesses, with the aim of facilitating a smooth integration," the companies said in their joint statement Thursday.
The two companies plan to merge their merchandise in the retail outlets with the aim of reducing the number of stores. . The companies also aim to roll-out the biggest click-and-collect network for technology products across the
"Simply having stores that just sell mobile handsets, or simply selling electrical goods or handsets that can communicate with other devices but not solving the issue of making them communicate, is actually missing the point for customers. So what we are trying to do here quite simply, is anticipate the issues and needs that customers have,"
Dixons chief executive
Dixons expects its full-year profit to be between 150million pound to 160million pounds, which is "at the top end of market expectations".
"Today we also announce that we are setting out on a new journey with
"The ability to take what we have built in electrical retailing and add the profound expertise of
"Together we can create a seamless experience for our customers that will enable technology to deliver what it promises - that is, to make their lives better."
The merger is expected to result in savings of 80 million pounds annually for the companies from the 2017-18 fiscal year onwards, Dixons said.
He said the aim was to exploit the soaring number of devices connected to the internet, since Dixons sold them and
The merger is not expected to result in the closure of any branch, James stated.
The Dixons Carphone merger is conditional on the approval of shareholders from both companies and on normal regulatory approvals and anti-trust clearances. Provided all necessary approvals are in place, it expects the merger to become effective by the third quarter of the current financial year.
Analysts expressed scepticism about the proposed link up while the market reacted adversely with Dixons's share dipping 10.3% on the news, while
It has also disposed of subsidiaries in
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