Dixons and Carphone Warehouse announce £3.8bn merger

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.

The BBC's business correspondent says the fact that the merger is expected to create savings of £80m raises questions about store closures and job losses.

Dixons has said the rollout could create around 4% more jobs, but admitted some staff would be hit, with a 2% cut to "operational and support functions."