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Carphone Warehouse buys Best Buy out of joint venture | Carphone Warehouse buys Best Buy out of joint venture |
(about 4 hours later) | |
Mobile phone retailer Carphone Warehouse has agreed to buy out its joint venture partner Best Buy for £471m, giving it full control of its retail operations across Europe. | Mobile phone retailer Carphone Warehouse has agreed to buy out its joint venture partner Best Buy for £471m, giving it full control of its retail operations across Europe. |
The joint venture - Carphone Warehouse Europe - operates almost 2,400 stores across Europe. | The joint venture - Carphone Warehouse Europe - operates almost 2,400 stores across Europe. |
The joint venture was created in 2008, when Best Buy paid £1.1bn for its 50% stake in the firm. | The joint venture was created in 2008, when Best Buy paid £1.1bn for its 50% stake in the firm. |
Carphone said the two companies had decided to focus on their own regions. | Carphone said the two companies had decided to focus on their own regions. |
"The transaction will simplify our ownership structure, streamline management decision-making and give us full ownership of our growth opportunities across Europe," said Carphone Warehouse chief executive Roger Taylor. | "The transaction will simplify our ownership structure, streamline management decision-making and give us full ownership of our growth opportunities across Europe," said Carphone Warehouse chief executive Roger Taylor. |
The deal was announced at the same time as a better-than-expected fourth quarter trading update from Carphone Warehouse Europe. | The deal was announced at the same time as a better-than-expected fourth quarter trading update from Carphone Warehouse Europe. |
It said like-for-like revenues had risen 6.5%, higher than the 4% to 5% rise expected by analysts. | It said like-for-like revenues had risen 6.5%, higher than the 4% to 5% rise expected by analysts. |
The withdrawal marks the end of a costly venture into Europe for Best Buy. | The withdrawal marks the end of a costly venture into Europe for Best Buy. |
Carphone Warehouse Europe opened 11 American-style Best Buy electronics megastores in the UK, but closed them in 2011 after they lost tens of millions of pounds. | Carphone Warehouse Europe opened 11 American-style Best Buy electronics megastores in the UK, but closed them in 2011 after they lost tens of millions of pounds. |
Investors welcomed news of the deal, sending shares in Carphone up 15.6%. |
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