Carphone Warehouse has completed its deal with Best Buy for a European joint venture and reportedly plans to have 200 Best Buy outlets in the UK, writes Amy Shields.

Landsbanki analyst Paul Deacon said that the target number of openings is “clearly bad news for DSGi”, increasing competition and capacity at a time when customer demand is weakening and internet sales are growing.

Kaupthing analyst Matthew McEachran said the news will bring weakness to DSGi and Kesa, but said “intelligence suggests that no such formulated plans exist” and that it is more likely that the retailer will test the market first. He advised investors to buy Kesa as the more likely acquisition target for Carphone and Best Buy.

Last week, Carphone reported that distribution revenues rose 4 per cent to£735 million and retail revenues increased 10 per cent to£498 million in the 13 weeks to June 28, a 1.4 per cent like-for-like fall. Like-for-like retail gross profit climbed 1.7 per cent and total mobile connections rose 12 per cent to 2.6 million.

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