The UK merger of Carphone Warehouse and US retail giant Best Buy will not be referred to the Competition Commission, the Office of Fair Trading has announced.

Apparently, no third party had raised any competition concerns about the merger, and the OFT said it did not believe that it would either now or in the future result in a lessening of competition in the UK market.

Best Buy, the world's largest electrical retailer, signed a £1.1 billion deal with Carphone Warehouse in May that gave each company a 50 per cent stake in Carphone's existing retail business.

Carphone has 2,400 stores in nine European countries under the Carphone Warehouse and Phone House brands and these are not expected to change format or branding under the deal.

Also included in the agreement are Carphone's internet and direct sales businesses and its mobile airtime reselling and insurance operations.

The most obvious result of the deal, however, will be the opening of megastores in the UK from next year carrying the Best Buy name.