Dixons in merger talks with Carphone

A merger of Dixons Retail Group and Carphone Warehouse would create an electronics giant with an estimated market value of £3.6bn.

Between them, the companies have more than 3,000 stores with annual sales of more than £12bn.

Dixons Retail Group, which specialises in selling mass market technology consumer and electronic products, employs more than 31,000 people in 12 countries and owns PC World and Currys.

The retailer said on its website that more than 100 million people shop with them every year online and in over 900 Dixons Group stores.

The announcement comes after Dixons reported a strong Christmas sales period with like-for-like sales in Britain and Ireland rising 5% in the three months to January 4 and internet sales up 3%.

The company said its St Stephen’s Day sales had been the strongest in its British history.

Carphone Warehouse, which has more than 2,000 stores, recently said like-for-like revenues rose 5% in Britain during the quarter to December 28 as its performance was boosted by the popularity of more expensive smartphones.