Direct Line and Dixons Carphone to join FTSE 100

<p>Direct Line and Dixons Carphone are set to join the FTSE 100 with Barratt dropping out.</p>

Direct Line and Dixons Carphone are set to become the two latest companies to join the FTSE 100 listing.

The insurer and electrical goods retailer are expected to sign up to the stock exchange in the coming week but homebuilder Barratt is due to drop out of the top 100 blue chip companies. Barratt only joined the index in March but will fall out after a drop in shares and concerns that the Bank of England will raise its interest rates in the future.

Soft drink can manufacturer Rexam is another company that is expected to fall out when the announcement is confirmed on Monday (September 8th). The firm has a market cap of £3.54 billion and was originally listed on the FTSE 100 in 1984.

Direct Line has enjoyed a positive few months with stocks rising by almost 40 per cent during the past year leading to a 6.5 per cent increase throughout August. After joining the FTSE 250 in December 2012 it has been able to generate a market capitalisation of £4.51 billion. Dixons Carphone has also gone from strength to strength in recent months.

The company was formed through a £3.8 billion merger between Carphone Warehouse and Dixons. The newly formed electricals retailer sells a range of products from mobile phones and boasts 3,000 stores across the UK with sales of almost £11 billion. The move has brought household names such as Currys, PC World and Carphone Warehouse under one umbrella.

Announcing the merger in May, Sebastian James, new chief executive of the firm, said: "We do things that are so adjacent that it makes sense to come together. Our markets are converging, and we are converging."

Dixons Carphone is among a number of companies that will be reviewed for introduction into the FTSE 100. There is also due to an additional review of businesses in the FTSE 250 categories to determine whether or not they need to be moved up or down.

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