Dixons finds a solution to its loss-making Italian problem-- paying €25 million to merge the Unieuro business with Italian CE retailer SGM Distribuzione, aka Marco Polo.

Combined Marco Polo and UniEuro assets (of which Dixons owns 15%) amount to 173 own stores and a number of franchise partners.

“This is a terrific outcome for both Unieuro and Marco Polo, as it creates a unified force that has the potential to be at the forefront of electrical retailing in this large European market," Dixons CEO Sebastian James says. "I am pleased that we remain a shareholder and that this transaction gives clarity on the long-term future for the business and for our colleagues."

UniEuro losses for the fiscal year ending April 2013 total £4.1m on sales reaching £516m and gross assets wroth £209.2m. Its unloading follows that of France's Pixmania and Turkey's ElectroWorld, leaving Dixons with Currys and PC World in the UK, Elkjop in the Nordics and Kotsovolos in Greece.

Asked on the deals, James remarks "I have no doubt that this increased simplicity and clarity will enable us to deploy our resources better and drive better value for all of our stakeholders."

Go Unieuro and Marco Polo Form Electrical Retailer Group for Italian Market