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