LONDON May 15 Britain's Carphone Warehouse and Dixons Retail have agreed a 3.8 billion pounds ($6.38 billion) all-share merger, creating a powerful pan-European mobile phone and electricals group with about 2,900 stores.
Carphone, Europe's biggest independent mobile phone retailer, and Dixons, Europe's No. 2 electricals retailer, said on Thursday the deal would be implemented by way of a scheme of arrangement of Dixons.
They said the merger would result in each of Dixons' and Carphone's shareholders holding 50 percent of a group to be called Dixons Carphone Plc.
Under the terms of the merger, Dixons shareholders will receive 0.155 of a new Dixons Carphone share in exchange for each Dixons share.
Based on Wednesday's closing prices Carphone had a market capitalisation of 1.90 billion pounds and Dixons 1.87 billion pounds. ($1 = 0.5960 British Pounds) (Reporting by James Davey; editing by Kate Holton)