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15 May 2014 | Gurjit Degun
The £3.8 billion merger between Dixons Retail and Carphone Warehouse is expected to save at least £80 million “on a recurring basis” through combining procurement and retail.
A statement on the move said savings are expected to be delivered in the 2017/18 financial year, achieving almost half in the 2015/16 financial year.
The retailers expect the savings to be accomplished through “integrated mobile retailing and procurement synergies”. Dixons Retail owns Currys and PC World.
The statement added: “These comprise synergies in the UK, Ireland and the Nordics resulting from creating an integrated mobile offering in Dixons shops, which will promote a seamless customer journey across all technology categories, underpinned by the use of Carphone’s expertise in mobile, together with procurement benefits resulting from the combined group’s scale.”
The new company will be known as Dixons Carphone which will be equally owned by shareholders from both companies.