Shares of Best Buy rose 7 percent Tuesday, following an announcement the retailer is selling its share of a European joint venture to its partner, Carphone Warehouse Group.
Best Buy is cashing in its piece of the business for about $775 million. The joint venture operates stores in eight countries. Best Buy got into the business in 2008. The sale seems to make a lot of sense, Morningstar retail analyst R.J. Hottovy said.
"With the proceeds they'll be receiving and just streamlining the focus, all in all there are a lot of positives getting rid of its European operations," Hottovy said. "I would consider it a smart move."
The transaction is expected to close by the end of June. Best Buy said the sale is not an indication it will make similar moves with its other international businesses.