The deal sees Best Buy take a 50% stake in the firm's chain of high street shops across the UK to open huge new stores across the country.

They will open new larger retail park-sized consumer electronic Best Buy stores across both the UK and Europe from next year.

Carphone Warehouse employs more than 1,000 people at its call centre at Tulketh Mill, on Blackpool Road in Ashton, Preston.

On Thursday company founder Charles Dunstone, who is to personally sponsor Preston's first city academy, 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 is 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."

The deal is expected to launch a new range of products for Carphone Warehouse stores which could see it selling more electrical goods such as laptop computers, DVD players, cameras and camcorders following the deal.

The cash generated by the deal will be used as a warchest to snap up a number of struggling rivals, with the UK operations of broadband internet firm Tiscali thought be in its sights.

A spokesman for the broadband firm said there was "still a long way to go" in the £650m deal.

He said: "We are just waiting to hear from them about whether they want to go into further talks."

As part of the Best Buy deal, Carphone Warehouse will retain its broadband operation and plans to use the cash made from the transaction to further develop its fixed line business and bid for struggling rivals.

Carphone, which has 2,400 retail stores including one on the Deepdale Retail Park, Preston, will aim to enlarge its £89 billion European retail market following the deal.

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