Carphone Warehouse and Dixons tie up

Carphone Warehouse and Dixons Retail confirm agreement of an all share merger of equals

Carphone Warehouse and Dixons tie up


The new company is expected to enter the FTSE 100 as Dixons Carphone plc and create a retailer with around 3000 shops across the UK with combined revenues of £12bn. Dixons shareholders will receive 0.155 of a new Dixons Carphone share for each share held. The companies estimate they will cut their combined costs by at least £80m per year through merging.

The top ten shareholder list in Dixons is dominated by asset management firms. They include Standard Life Investments with 8.7% of issued shares, UBS Global Asset Management with 5.9%, AXA Investment Managers holding 5.6%, Schroder Investment Management with 4.5%, Old Mutual Global Investors has 3.5%, while Jupiter, Majedie Asset management and L&G Investment Management all have around 3% of the company.

The situation is similar with Carphone Warehouse which has major shareholders including M&G Investment Management with 6.6%, Kames Capital with 5.2%, Newton Investment Management has 3.9%, Aviva Investors has 3.4% and BlackRock owns 2.6%.

The two companies have been thrashing out the details of the proposed deal for the past three months. The merger will be executed through a scheme of arrangement later this year and requires approval of 75% of the shareholders in both companies as well as competition clearance.

Shares in both retailers have not reacted well to the news however, with Dixons shares trading down 3.4% at 49.1p and Carphone Warehouse shares down 1.7% to 322p. 


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