Best Buy is now selling its 50 percent joint venture stake back to the mobile phone retailer Carphone Warehouse for $775 million.
It is a huge loss for Best Buy, who bought 50 percent of Carphone Warehouse’s retail operations for $2.1 billion back in 2008, during the time when the global financial crisis was kicking the European market below the belt.
Best Buy said, in a public statement on Tuesday, that is has entered a definitive agreement to sell its half of the business back to Carphone Warehouse. The totaling figures include 420 million pounds and around 80 million pounds in Carphone Warehouse’s stock.
The deal still needs to be approved by Carphone Warehouse’s shareholders; however, it will not be subject to any financial closing conditions.
This transaction is expected to close somewhere around the end of June 2013.
Best Buy president and chief executive Hubert Joly stated, “Each international market is different and the slae of our European operations should not suggest any similar action in our other international businesses.”
Best Buy joined up with Carphone Warehouse in 2008 in hopes to expand to the European Market. The idea was to have around 200 stores open under the Best Buy brand across Europe over the next few years. Unfortunately , that doesn’t appear to be the case.
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