News Column

CORRECT: Dixons Retail, Carphone Warehouse Shares Surge After Merger Approval

September 2, 2014

Anthony Tshibangu

(An item published on July 18 at 1151 BST misstated the size of the merger deal. The correct version follows.)

LONDON (Alliance News) - Shares of Dixons Retail PLC and Carphone Warehouse Group PLC Friday led the FTSE 250 Friday, after the shareholders of both companies approved their GBP3.6 billion merger that will create the UK's biggest retailer of mobile phones and electrical goods.

Dixons shares were quoted up 2.4% at 48.30 pence, while Carphone Warehouse shares were quoted up 3.5% at 313.50 pence Friday morning.

At their respective general meetings on Thursday, Dixons Retail received 75% approval for the deal, while Carphone Warehouse received 85% approval.

Sebastian James, chief executive of Dixons Retail, said: "I'm delighted that shareholders have unequivocally supported the creation of Dixons Carphone."

The merger, which was cleared by the European Commission last month, is expected to become effective from August 6, with Dixons Carphone PLC shares commencing trading on August 7.

The aim of the deal is to amalgamate the companies' electrical goods and phone stores into a joint offering, and to capture the growing trend toward connected devices, as smartphones become increasingly used to control everything from thermostats to lighting and streaming music across homes. The companies also aim to roll-out the biggest click-and-collect network for technology products across the UK.

The companies say the deal will create "a new retailer for a new digital age".

Andrew Harrison, chief executive of Carphone Warehouse, said the company appreciated the "overwhelming support" of its shareholders.

"We believe that Dixons Carphone will be the first and the best retailer to offer this complete end-to-end service. In doing so, we will create value for all of our stakeholders. It's an exciting time, and together we can't wait to bring the Dixons Carphone vision to life," Harrison added.

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Source: Alliance News

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