The Carphone Warehouse has sold a half share in its retail business to Best Buy for £1.1bn.

The Carphone Warehouse has announced it is selling a 50% stake in its retailing business to US company Best Buy for £1.1 billion.

The deal will create a joint venture aimed at capitalising upon the European appetite for consumer electronics, the company said – with growth expected to be led by the convergence in entertainment, computing and communications.

The consumer electronics industry has been the fastest-growing category in European retail over the past five years and is worth an estimated £89bn.

On completion of the deal, both companies will each own 50% of The Carphone Warehouse’s retail business, comprising 2,400 stores, the web and direct businesses, insurance operations, and its airtime reselling businesses.

The Carphone Warehouse will retain ownership of its entire UK fixed line telecoms, comprising TalkTalk, AOL Broadband and Opal, as well as its share of Virgin Mobile France. Best Buy will continue to hold its 2.9% stake in The Carphone Warehouse.

Best Buy is a world-leading consumer electronics retailer, operating 1,314 stores in the US, Canada and China. It currently employs around 150,000 staff and notches up annual sales of more than £20bn.

Charles Dunstone, CEO of The Carphone Warehouse, said: “We have been working closely with Best Buy for nearly two years, and it is clear that we have very complementary cultures, skills and assets – it’s a perfect match. It is also clear that we have a significant opportunity for incremental growth in our retail business which we can best realise with Best Buy on board.”

For more information, visit www.cpwplc.com

By Natasha Piscitelli