The £3.7 billion merger between electronics retailers Carphone Warehouse and Dixons – billed by the two firms as a pitch for the internet of things (IoT) market – has received the blessing of the European Commission.
The two retailers are attempting to rejuvenate their traditional business model by presenting itself as “a new retailer for the digital age”.
Carphone and Dixons are feeling continued pressure from highstreet and online rivals, hence the need for presenting a new vision of its business.
The commission highlighted existing rivalry as the reason the merger does not raise competition concerns.
Carphone offers mobile devices and services in the UK, France, Spain, the Netherlands, Germany, Portugal, Sweden and Ireland.
The company repeated its earlier statement that it could deliver £80 million of synergies by 2017/18.
Other benefits it highlighted included cost-sharing, improved purchasing power and placing a Carphone Warehouse offering in every store owned by the merged entity, according to the Financial Times.
Carphone also announced its full-year results which showed a decline in revenue to £3.28 billion in the year to end-March 2014 from £3.35 billion in the previous year (like-for-like revenue actually increased by five per cent, the company said). Profit after tax increased to £103 million in 2013/14 from £99 million in the previous year.