British retailers Dixons and Carphone Warehouse confirm they are negotiating a possible fusion, although they warn that the talks could still end up for naught, with not a single deal being struck.
14 billion euro group
If both chains were to join, a 12 billion pound (14.6 billion euro) group would be formed as Dixons is currently Europe’s second largest electronics distributor while Carphone is Europe’s most important mobile phone seller. Together, they would own some 2,900 points of sale.
Both companies emphasize that talks are only in a preliminary phase, despite the need to announce a decision – whether to fuse or not – by 24 March.
Dixons wants a fusion
Dixons is definitely hoping for a fusion as it is currently not represented that well in the mobile communication branch, despite having 31,000 employees, 900 points of sale in 12 countries and a 2013 turnover of 8.2 billion pounds (9.9 billion euro).
Carphone Warehouse on the other hand has 2,000 stores in 7 countries, with a 2013 turnover of 3.7 billion pounds (4.5 billion euro). In the Netherlands, Carphone also owns The Phone House, a chain with 212 stores.
Carphone the bigger of the two
Despite its lower turnover, Carphone is still the bigger factor as it has a 1.8 billion pound (2.2 billion euro) market value, while Dixons is considered to be worth 1.7 billion pounds (2.1 billion euro).