Best Buy, the world's largest consumer electronics retailer, is paying $2.1 billion for a 50 percent stake in Europe's largest cell phone retailer, the companies announced today.

The joint venture will sell consumer electronics in Europe and the United States, through Carphone Warehouse's 2,400 existing stores as well as online. The companies also said they would introduce Best Buy stores across Europe.

Best Buy International's chief executive, Robert Willett will be the chairman of the joint venture, while Carphone Warehouse's chief financial officer, Roger Taylor, will be the chief executive. Carphone Warehouse's broad operations are not included, and Best Buy will keep the 2.9% stake it owns in Carphone Warehouse.

"It is clear that we have very complementary cultures, skills and assets - it's a perfect match," Charles Dunstone, CEO of The Carphone Warehouse said. "It is also clear that we have a significant opportunity for incremental growth in our retail business which we can best realize with Best Buy on board."

The two companies worked on developing Best Buy Mobile, and have been collaborating to bring Geek Squad, a 24-hour computer support task force, to European markets.

"We believe our combined expertise has potential to result in significant financial upside as we together attempt to transform retail in Europe through the Carphone Warehouse, Phone House and Best Buy brands," said Brian Dunn, president and chief operating officer.

The deal is subject to approval by Carphone Warehouse shareholders at the annual general meeting in August.