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Oct. 12, 2007

Yesterday, Sanyo Electric's top executives have reached an agreement to sell its loss-making mobile phone division to Kyocera of Japan.

In details that were offered to the press, Sanyo granted Kyocera priority negotiating rights.

According to a joint statement, Sanyo and Kyocera signed a basic agreement to continue negotiations regarding the transfer of Sanyo's mobile phone division.

However, Sanyo said the two companies had not yet fixed a final closing price for the transaction.

The deal is the latest move in Sanyo's overall restructuring plans to divest itself of struggling, money-losing or non-core businesses.

The company prefers to keep its focus on rechargeable batteries as part of its key operations.

Sanyo has consistently reported net losses since mid-2004.

The deal is expected to place Kyocera in the seventh place globally in terms of mobile phone manufacturers by units.

Sanyo's sale could also potentially increase Kyocera's presence in the United States said the company.

Sprint Nextel was a major customer for Sanyo.

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Source: Wireless Week