CEO says transaction allows firm to strengthen balance sheets and simplify the business

Best Buy sells stake in European business to Carphone Warehouse for £500m

Best Buy has entered into an agreement to sell its 50 per cent interest in Best Buy Europe, the joint venture it created in 2008 with Carphone Warehouse.

"After reviewing the business and spending time with our partners, we concluded that the timing and economics were right to enter into this agreement with CPW," said Hubert Joly, president and chief executive officer of Best Buy.

"This transaction allows us to 1) simplify our business; 2) substantially improve our Return on Invested Capital, one of the five pillars of our Renew Blue transformation; and 3) strengthen our balance sheet,” said Joly.

There’s no word on any moves for Best Buy’s other businesses in Mexico, Canada and China, and the CEO has stressed that there will not be any similar action in the these areas: “Each international market is different and the sale of our European operations should not suggest any similar action in our other international businesses."

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