Mobil-phone retail chain Carphone Warehouse Group (CPW) has agreed to buy Time Warner's U.K. AOL business.

Carphone Warehouse will part with 370 million pounds, or $688 million, to become the U.K.'s third-largest provider of broadband services, writes the Associated Press. It will acquire AOL's internet service customers and supporting management and infrastructure. AOL will provide a co-branded portal, content and other audience services - and will manage the online ad sales for CPW's combined broadband customer base through a revenue-sharing agreement, writes paidContent.

Completion of the deal is subject to European Union regulators' approval and is expected by year's end.