Best Buy announced a deal with the The Carphone Warehouse that will bring Best Buy Stores to Europe.
Best Buy stores in the U.S. are huge consumer electronics temples. If they can bring that scale to Europe they could hurt currently leading consumer electronics chains like Metro's Saturn and Media Markt or Dixons in the UK.Best Buy enters Europe via a venture with The Carphone Warehouse Group PLC.
The assets of the newly-formed company will comprise The Carphone Warehouse’s existing retail business, operating from more than 2,400 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.
On completion of the transaction, The Carphone Warehouse and Best Buy will each own 50% of the retail business, comprising all the 2,400 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.
Best Buy is a world-leading consumer electronics retailer, with fiscal 2008 revenues of $40 billion, operating income of $2.2 billion, 150,000 employees and 1,314 stores providing over 48 million square feet of sales space in the United States, Canada and China. Best Buy plans to acquire a 50% stake in the new company for a cash consideration of £1.1 billion, or $2.1 billion.
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