Best Buy abandons European, sells stake back to Carphone Warehouse
30th Apr 2013 | 19:18
Best Buy we hardly knew ya
U.S. tech behemoth Best Buy has agreed a deal with Carphone Warehouse to sell its 50-50 stake in their joint venture.
Subject to shareholder approval, British company Carphone Warehouse Europe will pay £471m to take full control of the company which trades as Carphone Warhouse and Phone House with 2,400 stores.
The two companies went into business together in 2008 when Best Buy paid £1.1 billion to up its stake in Carphone Warehouse from 3 per cent to 50 per cent.
According to the Financial Times, Best Buy will make £391m in cash and £80m in stock, which will be locked up for a year, as part of the agreement.
If it goes through, the deal will see Best Buy take a significant loss on it company's investment and the end of an unhappy expansion into the European territories.
The companies joined had also joined forces on the unsuccessful Best Buy UK stores, which saw all 11 UK locations close less than two years after setting up shop.
Back in 2011, Carphone Warehouse sold its stake in Best Buy Europe back to the US giant, so this sale was "inevitable" according to CEO Sir Charles Dunstone.
Best Buy shares went up as Wall Street welcomed the news