LONDON (Reuters) – On Monday the U.S. distributor of consumer electronics Best Buy announced it would pay 838 million pounds (977 million) in the UK Carphone Warehouse to buy back its share in their joint venture in mobile phones the United States.
At the same time, the group abandoned its idea of launching a chain of department stores in Europe, noting in passing that it will close its 11 Best Buy stores in the UK.
Earlier this year, the group had already given up the opening of Best Buy stores in China and Turkey.
Best Buy had bought 50% of the distribution business of Carphone – which specializes in point of sales of mobile phones – in 2008 for about $ 2.1 billion, with the dual objective of benefit from the expertise of the British group in the mobile and use it as a bridgehead for expansion in Europe.
Carphone and Best Buy have indicated that most of the 1,000 employees affected by the closure of 11 Best Buy stores in Britain would be redeployed to other outlets.
Three years ago, the two companies had announced their ambition to create a chain of 100 stores in the United Kingdom, which later spread throughout Europe.
Carphone and Best Buy said they would focus on retail, smaller in size, from Carphone in Europe.
The title went on to Carphone 9:50 GMT of 2.68% to 353.87 pence, while the London Stock Exchange yielded 1.36%.