The Carphone Warehouse Group PLC and Best Buy Co., Inc. agreed to form a new venture to accelerate their growth. The assets of the newly-formed company will comprise The Carphone Warehouse’s existing retail business, operating from more than 2400 stores in nine European countries under the Carphone Warehouse and Phone House brands; and The Carphone Warehouse’s share of its existing relationships with Best Buy.
Best Buy plans to acquire a 50% stake in the new company for a cash consideration of £1.1 billion, or US$2.1 billion.
On completion of the transaction, the Carphone Warehouse and Best Buy will each own 50% of the retail business, comprising all the 2400 stores, the web and direct businesses, the insurance operations, and its airtime reselling businesses. The Carphone Warehouse continues to own 100% of its fixed line telecoms business in the U.K., comprising TalkTalk, AOL Broadband and Opal; and its share of the Virgin Mobile France joint venture. Best Buy continues to hold its 2.9% stake in The Carphone Warehouse.