The Carphone Warehouse and Dixons Retail have agreed a £3.7 billion all-share merger, creating a mobile phone and electricals company with around 2,900 stores across Europe.
The new firm will be split equally between the firms' existing shareholders.
Carphone Warehouse, Europe's biggest independent mobile phone retailer, and Dixons, Europe's number two electricals retailer, said the new company would be called Dixons Carphone PLC.
More top news
Scientists believe they may have found the key to fighting HIV - and it rests in the immune system of llamas.
The United Nations has made a renewed and record-breaking global appeal, after falling well short of its last request for financial help.
It used to be the most important club on the northern variety circuit, but since Bernard Manning's death the club no longer draws the crowds