Carphone Warehouse to buy Best Buy's stake in CPW Europe

Carphone Warehouse's shares advanced Tuesday after announcing a proposal to buy out Best Buy in joint venture CPW Europe.

Carphone Warehouse's shares advanced Tuesday after announcing a proposal to buy out Best Buy in joint venture CPW Europe.

The company has conditionally agreed to become the sole owner of CPW Europe by purchasing Best Buy's 50% stake for a net consideration of £471m.

Chief Executive, Roger Taylor, said the proposed acquisition would bring an end to a five-year joint venture with Best Buy.

Advertisement - Article continues below

"Carphone Warehouse and Best Buy have enjoyed a great relationship over the last five years ensuring that we shared and enjoyed many aspects of each other's business attributes," he said.

"However, following the sale of our US interest last year, we have become increasingly responsible for the day-to-day operations of CPW Europe whilst conversely Best Buy have become more focused on their wholly-owned businesses. As a result, both parties have agreed that this is a good time for us to bring the joint venture to an end, whilst ensuring that our relationship remains in place by way of our global buying alliance."

He said the transaction will simplify the company's ownership structure, streamline management decision-making and give the company control over growth opportunities across Europe.

Separately, the firm announced placing of 47m new ordinary shares of 0.1 pence each, representing about 9.99% of the existing issued ordinary share capital.

Proceeds of the placing will be used to partly fund the proposed acquisition.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular


The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020

This chart pattern could be extraordinarily bullish for gold

The mother of all patterns is developing in the gold charts, says Dominic Frisby. And if everything plays out well, gold could hit a price that invest…
1 Jul 2020

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020