UK based Carphone Warehouse is buying back the 50% of CPW Europe that it sold to USA based Best Buy back in 2008.
Carphone Warehouse is paying US$730 million to buy back the stake — which it originally sold for US$2.1 billion. The joint-venture operates around 2,400 stores in nine European countries under the Carphone Warehouse and Phone House brand.
Roger Taylor, Chief Executive of Carphone Warehouse, said: “Following the sale of our US interest last year, we have become increasingly responsible for the day-to-day operations of CPW Europe whilst conversely Best Buy have become more focused on their wholly-owned businesses. As a result, both parties have agreed that this is a good time for us to bring the joint venture to an end, whilst ensuring that our relationship remains in place by way of our global buying alliance.”
“In view of this, our Global Connect relationship and our joint venture in China and Mexico will also come to an end and this will enable both parties to focus on opportunities at their own pace and in their own preferred geographies.”
Best Buy is taking a noncash write down of US$200 million as a result of the sale.