Best Buy Completes Carphone Warehouse Investment

New York City Best Buy Co. said Monday that its investment in U.K. mobile-phone retailer The Carphone Warehouse is now complete.

Best Buy paid $1.1 billion in cash on hand and $1 billion of debt proceeds for The Carphone Warehouse.

Debt proceeds are from $500 million in bank borrowings and $500 million in five-year senior notes.

The closing of the deal creates a new company made up of The Carphone Warehouse's retail and mobile-service businesses.

The Carphone Warehouse and Best Buy each now own 50% of the new company. The Carphone Warehouse continues to own all of its fixed line telecoms business in the U.K. and its share of the Virgin Mobile France joint venture.