U.S.-based electronics giant Best Buy Co. said Monday it has finalized its purchase of Canadian rival Future Shop Ltd.
As a result of the move, Future Shop is now a wholly owned subsidiary of Best Buy and its shares will no longer trade on the Toronto Stock Exchange.
Hassan Khosrowshahi - who founded Future Shop in 1982 - has also resigned his post as chairman and chief executive. Mr. Khosrowshahi had said at the time that the friendly $580-million deal was announced that he would leave the company once the purchase was complete.
"The completed acquisition of Future Shop is an exciting step for both companies," Best Buy chairman and chief executive Richard Schulze said.
"It helps to achieve Best Buy's goal of becoming a global leader in the technology and entertainment industry, and provides Future Shop with the resources of a multi-national organization committed to growth and expansion throughout Canada."
What many expected to be a heated battle between the two retailers in the Canadian market came to a sudden end in August when Best Buy announced its $17-a-share offer for Burnaby, B.C.-based Future Shop. Before the deal was unveiled, Best Buy had said it planned to enter the Canadian market independently, setting up its own chain of big-box stores.
The proposed purchase was approved by the Canadian Competition Bureau last month.
In Monday's statement, Best Buy said Future Shop president and chief operating officer Kevin Layden will remain in his post, reporting to Best Buy president and chief operating officer Brad Anderson.
"The post-merger integration process will be a collaborative effort, maximizing the talent and expertise of Future Shop employees," Mr. Layden said.
Terry Weber