Frasers Group has continued its buying streak with the purchase of almost a fifth of online electronics retailer AO World.

The 18.9 per cent stake has cost the Sports Direct owner £75 million after two years of talks, and will see the creation of a ‘strategic partnership’ between the pair. For Frasers, the deal will help it expand its business further into homeware and white goods.

The news comes days after Frasers increased its stake in online fashion retailer Asos to almost nine per cent and amid an ongoing strategy to buy minority stakes in luxury fashion brands such as Hugo Boss and Mulberry under chief executive Michael Murray, the son-in-law of Frasers Group owner Mike Ashley.

AO World, formerly Appliances Only, is the largest domestic appliance seller in the UK. The company benefited from the surge of online shopping during the early part of the Covid-19 pandemic, but has struggled more recently during the cost-of-living crisis and a cutback in consumer spending.

Frasers Group owner Mike Ashley said: “We are delighted to have the opportunity to form a supportive, strategic partnership. AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.”

Frasers reportedly purchased the shares from hedge fund Odey Asset Management after misconduct allegations were levied at the firm's founder Crispin Odey.

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