Dixons Retail, the owner of Currys and PC World, and mobile phone retailer Carphone Warehouse have announced they are to merge in a deal worth £3.8bn.
The new firm will be known as Dixons Carphone, with ownership to be split equally between the two firms’ existing shareholders.
Dixons operates more than 500 Currys and PC World stores in the UK and Ireland.
Carphone Warehouse operates more than 2,000 stores across Europe.
Shares in Dixon’s fell by 5% and in Carphone Warehouse by 3% in trading on the London Stock Exchange after the announcement.