Reiko Uchida, 09 May 2008
The Carphone Warehouse Group PLC and Best Buy Co., Inc. have agreed to form a new venture to accelerate their growth by capitalising on the European consumer’s evolving appetite for consumer electronics. The Carphone Warehouse is proposing to contribute its retail business (which includes all retail stores, its mobile airtime reselling operations, and its insurance operations) into the new venture in return for a 50% stake in the new company and total cash consideration of £1.088 billion ($2.142 billion), payable by Best Buy on completion. The transaction includes The Carphone Warehouse’s economic interests in Best Buy Mobile in the United States, as well as the Geek Squad in the U.K. and Spain. The transaction excludes The Carphone Warehouse’s U.K. fixed line operations, its share in Virgin Mobile France and its major freehold properties.