Warner Music U.K. Chairman Nick Phillips on Friday announced that WEA Records and London Records have merged, effective immediately.

John Reid, currently Managing Director of WEA Records, will oversee the new WEA-London Records operation.

Under terms of the merger, the marketing, press, promotion, creative and production departments of both companies will be combined. However, the A&R functions of both companies, which include the London, ffrr, WEA, Eternal and Blanco Y Negro labels, will remain separate.

The new combined operation will be located at the current London Records offices in West London. It is anticipated that, as a result of this merger, between 15-20 people will be let go.

"The combined operations of both companies will create a powerhouse for breaking new acts and, by maintaining separate A&R operations for WEA and London, will further enhance our commitment to the all important business of signing and developing of new U.K. talent, as well as perpetuating our joint tradition of taking three-hour lunches," said Phillips.

Among the artists signed to WEA Records are Cher, Catatonia, Enya, the Pretenders and the Webb Brothers and London Records' artists roster includes All Saints, Artful Dodger and Sugababes.

Commented London Records Chairman Tracy Bennett, "This is a fabulous opportunity for everyone concerned."