Carphone Warehouse closing UK Best Buy stores

[November 07, 2011]  LONDON (AP) -- Carphone Warehouse is closing its 11 Best Buy big-box electronics stores as part of a reorganization of its relationship with the U.S.-based company.

Carphone Warehouse said Monday it is selling its interest in Best Buy Mobile in the U.S. and Canada to Best Buy for 838 million pounds ($1.34 billion), and plans to return all but 25 million pounds of that to shareholders.

Best Buy Europe, in which Carphone Warehouse holds a half interest, will now focus on selling Internet and mobile phone connections through Carphone Warehouse outlets.

The two companies are also launching a joint venture, Global Connect, to develop markets outside North America and Western Europe.

Carphone Warehouse shares were up 1.7 percent at 350.75 pence in morning trading on the London Stock Exchange.

[Associated Press]

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