Carphone Warehouse and Dixons Retail have announced the details of their long-awaited merger, which will result in a new consumer electricals giant, headed by the current chairman of Carphone, Sir Charles Dunstone and Sebastian James, currently CEO of Dixons, who will retain their roles in the new entity.

The £3.8 billion deal is conditional on shareholders from both companies agreeing to it.

Sir Charles Dunstone said: "We are incredibly excited about the opportunity today's news brings to our organisations, our consumers and our investors. Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world.  We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age. We are also creating jobs and we see many opportunities for further growth. This is a new chapter for both businesses and we are energised and proud to be part of what will be another fantastic journey for consumers and shareholders."

John Allan, CBE, chairman of Dixons said: "This merger will create a new, world class British retailer for the new digital age, with new opportunities for growth and greater scale and reach. Colleagues of both complementary businesses are experts in their fields, with a shared passion for technology, connectivity and brilliant service. Coming together when both companies are flourishing, we will create a stronger business for our customers, colleagues and shareholders - for now and the future."