Thursday May 8, 04:00 PM
Carphone Warehouse Rings The Changes
By Sky News
Carphone Warehouse has announced plans to create a European consumer electronics empire after striking a £1.1bn deal with Best Buy. The mobile phone retailer and TalkTalk operator is to redevelop its 2,400 stores in a joint venture with
the US group.As well as phones they will also sell electronic goods from TVs to PCs and laptops. Best Buy, one of America's biggest names in electronics retailing - will have a 50% stake in the new firm. Carphone Warehouse will retain its broadband operation, including TalkTalk and AOL Broadband. It plans to use the cash made from the Best Buy sale to expand its fixed line telecoms business and reportedly snap up struggling rivals. Under the terms of the deal, Carphone Warehouse and Phone House will remain as high street stores. But larger Best Buy outlets will start opening next year at retail parks across the UK and Europe. The deal leaves the existing ownership structure of Carphone Warehouse intact. Founder and chief executive Charles Dunstone will retain his stake of just over 30%. The Carphone Warehouse retail management team will also remain in place.
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