Shares of Best Buy (NYSE:BBY) surged more than 9% in Tuesday morning trading after the company announced that it had sold its stake in a European joint venture.
The struggling big box retailer said it received $775 million for its 50% share in Carphone Warehouse Group, less than half of what the company paid to acquire the stake in 2008, Reuters noted.
At the time it purchased half of Carphone Warehouse Group, Best Buy was planning an overseas expansion. It intended to leverage its stake in Carphone to help launch a chain of Best Buy stores in Europe.
However, fallout from the European debt crisis and the continent’s lingering recession scuttled those plans. In 2011. Best Buy paid $1.3 billion to acquire Carphone’s stake in its U.S. mobile phone partnership.
Best Buy’s withdrawal from the joint venture leaves Carphone with 2,400 stores in nine countries across Europe.
Earlier this month, Best Buy announced that it would open mini-stores promoting Samsung products in 500 of its big box stores nationwide.