Carphone Warehouse is set to buy Tiscali UK

Carphone Warehouse is set to buy the UK division of Tiscali for £236 million in a bid to create the UK’s largest residential broadband provider.

The takeover, which is expected to be completed next month, will see Tiscali UK merge with TalkTalk – Carphone Warehouse’s ISP that serves around 4.25 million homes in the UK.

Charles Dunstone, CEO of Carphone Warehouse, said: “We’re delighted to be acquiring Tiscali’s UK business.

“We know the business well and the fit with TalkTalk is perfect.”

The deal comes just two months after talks between Tiscali and Sky ended due to the current economic conditions.