Dixons and Carphone tie-up close to completion

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Dixons and Carphone tie-up close to completion

Simon Quicke

The deadline for a decision in the Dixons and Carphone Warehouse merger is looming with a £3.7bn deal between the two electrical retailers looking increasingly likely.

Talks have been taking place over the last four months after the two firmsfirst revealed that they were looking to a potential merger back in February but the deadline to make a decision is just days away coming on the 19 May.

Originally the retailers had been working to a timetable that would have made them disclose their intentions by the end of March but they asked for additional time from the Takeover Panel and got an extension until the 19 May.

A tie-up between the two firms would create a £3.7bn retail giant that would have interests in computer and telecom markets and reports that have circulated in the last few days appear to indicate that when the two do come to announce a decision it will be in favour of a merger.

Reports have suggested that it will be seen as a 50-50 equal tie-up rather than a takeover by one party and the deal has been confirmed in the run-up to the deadline and the last few details about the senior management structure are being finalised.

Dixons is due to report year numbers next week, just days before the deadline, and there have been no updates from either firm since the last official communication on 24 March.


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