The Carphone Warehouse Group, the mobile phone retailer, said Thursday it has agreed to sell 50 percent of its retail operations to US electronics group Best Buy for £1.1 billion in cash as part of an overall tie-up.
Best Buy will acquire half of The Carphone Warehouse's European and US retail interests. The pair would then form a joint-venture company that would see the introduction of Best Buy stores across Europe.
"The Carphone Warehouse Group and Best Buy Co. have agreed to form a new venture to accelerate their growth by capitalising on the European consumer's evolving appetite for consumer electronics," said a statement.
"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," it added.
The Carphone Warehouse said that it would use proceeds from its sale to Best Buy to pay down debt and to invest in broadband customer growth and infrastructure.
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