The deal will include all of Carphone Warehouse’s 2,400 retail stores found in nine European countries. Also mentioned in the contract are the web and direct businesses of the company, its insurance operations and its airtime reselling businesses.
"It is clear that we have very complementary cultures, skills and assets — it's a perfect match," said Charles Dunstone, chief executive officer of The Carphone Warehouse, according to the AP. He also added: "It is also clear that we have a significant opportunity for incremental growth in our retail business which we can best realize with Best Buy on board."
Carphone Warehouse will also continue its activity as a single player in the United Kingdom with its fixed line telecoms business. The group includes TalkTalk, AOL Broadband and Opal.
"We believe our combined expertise has potential to result in significant financial upside as we together attempt to transform retail in Europe through the Carphone Warehouse, Phone House and Best Buy brands," said Brian Dunn, president and chief operating officer, according to the Associated Press.
For now, Best Buy sells electronics, entertainment software and home-office products in China, Canada and in the United States. Europe has been in the company’s target for a long time and this seemed the best opportunity to make it happen.
The two companies have experienced some minor share falls this year, Best Buy with 17 percent and Carphone Warehouse with 13 percent and their venture is expected to bring a major financial boost in the long run.