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Sep. 17, 2007

Mobile phone maker Kyocera said it is entering into the final talks in acquiring the cell phone unit of Sanyo Electric.

Kyocera is reportedly acquiring the unit for $434 million.

Combined, the two companies would create the world's seventh largest handset maker, according to some reports.

The sale of its mobile phone unit would be the latest step in Sanyo's large restructuring projects, in an effort to shed struggling business units and return to overall profitability.

Sanyo sold its stake in Sanyo Electric Credit to General Electric earlier in 2007.

Now, it is also seeking a new buyer for its microchip business.

In the second quarter of 2007, Kyocera was number ten on the list of the world's largest handset manufacturers, while Sanyo was number 11.

Kyocera stands not only to gain an increase in the world's market share from the deal, but also an increased presence in the U.S. and also in the Canadian market.

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Source: Wireless Week