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
Listen to music for under an hour a day and always wear earplugs to nightclubs and sport events to protect your hearing, health experts say.
Father Anthony McSweeney, 68, was found guilty of sexually abusing a teenage boy at a children's home in Hounslow between 1979 and 1981.
McLaren's Fernando Alonso has released a YouTube video reassuring fans that he is well after crashing heavily in testing last weekend