
Best Buy Co. Inc. is looking to step up its European mobile phone business with a $2.14 billion investment.
The American retail giant is in the process of acquiring a 50 percent stake in The Carphone Warehouse Group plc’s mobile retail operations, creating a joint project that will help launch the Best Buy brand across the Atlantic. The new company will operate 2,400 stores in nine European countries under both companies’ brands in addition to Carphone Warehouse’s mobile virtual network operator service in every country except France.
Both companies have said they hope to expand Carphone Warehouse’s existing European footprint and will be rolling out new stores under the Best Buy name by the start of next year. The UK based retailer will maintain its fixed-line telecom business.
The deal will help solidify an 18 month relationship between the two companies that seeks to join Carphone Warehouse’s strength as a high street retailer and Best Buy’s sourcing and distribution expertise. This relationship signals Best Buy’s desire to expand beyond mobile phones and in to the broader world of consumer electronics.
Carphone Warehouse’s CEO Charles Dunstone said, “we have been working closely with Best Buy for nearly two years and it is clear that we have very complementary culture, skills and assets — it’s a perfect match. … Best Buy brings demonstrable expertise in merchandising, sourcing and customer service: that should help us accelerate the evolution of our business towards the broader connectivity market. We bring local knowledge, infrastructure and the expertise in linking services to product: that should help them push into larger-format consumer electronics retailing in Europe.”
The deal should be completed, on approval of Carphone Warehouse’s shareholders, by August 30th.




















