Best Buy has invested $2.1 billion in a new European retail venture with Carphone Warehouse, the European mobile phone giant. Discussions have been going on for the past four years and the two companies have collaborated in the past on Best Buy Mobile in the US, and bringing Best Buy's 24 hour Geek Squad support service to Europe.

The present venture appears to be a good move by Best Buy giving the retail behemoth a low-risk platform to expand a prominent retail presence into European markets with a well established and familiar European brand.

London's Carphone Warehouse Group will continue to remain sole owner of its fixed line telecommunications businesses in the UK, which includes Talk Talk, AOL Broadband, Opal and its share in Virgin Mobile France.

Best Buy declined to say how many stores it planned to open and for now the European management teams will remain in place. The deal is still subject to Carphone Warehouse shareholder approval at the AGM in August.

Investors seemed initially skeptical about the merge by the bricks-and-mortar giants with shares of both companies falling slightly. Carphone Warehouse was down 3.4 percent and closed at 289 pence ($5.67) while Best Buy fell 2.6 percent $1.12 in afternoon trading to $42.33

So will the deal be good buy for Best Buy? JP Morgan is not too convinced with a position shift from 'neutral' to 'overweight' for Carphone Warehouse, However the additional funds and Best Buy's retail experience should inject new impetus.

We shall see once the transatlantic dust settles.