Carphone Warehouse has completed its planned acquisition of Best Buy’s 50% share of the CPW Europe business, bringing an end to the joint retail venture.
From next month’s AGM, Andrew Harrison is stepping up to become CEO of the Carphone Warehouse Group. Roger Taylor, current Group CEO, will become deputy chairman.
Carphone Warehouse is planning to take over the European business that bears its name, which is actually a 50/50 joint venture set up with US-based retailer Best Buy in June 2008. It’s agreed to pay £471 million for the 50% of CPW Europe it doesn’t already own.
This 50% share in Carphone Warehouse was originally sold for around £1.1 billion as part of Best Buy’s European expansion.
American technology retailer Best Buy Co. Inc. has confirmed that it’s received a letter from Richard Schulze, the company’s founder and former chairman, outlining an offer to acquire all the Best Buy shares he doesn’t already own. Mr Schulze resigned as chairman in June this year.
His offer of $24 to $26 per share is significantly above the current trading price for the company’s shares, which are trading at around $20.
Carphone Warehouse Group plc has published a trading update for the fourth quarter of its financial year.
Revenue at CPW Europe - the company’s 50% joint venture with Best Buy - were down 5.5%, while total connections were down 19%. Postpay connections were up in the UK, although the company estimates that the overall prepay market in Q4 was down 30-40% in the UK.
The UK-based Mobile Money Network, which is behind the Simply Tap mobile shopping app, says Visa Europe is planning to take a 15% stake in its business. Visa Europe will join the MNN’s three founders: Monitise, Best Buy Europe and Charles Dunstone.
The two businesses aim to implement a number of m-commerce initiatives in the UK in 2012.