Jan 16, 2008
Struggling Sanyo Electric Co. will sign a final agreement to sell its cellphone operations to Kyocera Corp. possibly by the end of next week, sources familiar with the situation said Wednesday.
The cost of the transaction will likely amount to 45 billion to 50 billion yen, the sources said. The deal would signify the first amalgamation of cellphone operations between Japanese manufacturers.
The envisioned transaction includes sale of parts of the premises and buildings of Sanyo's factory in Daito, Osaka Prefecture, where Sanyo engineers have been developing cellphones.
Under the proposed deal, Kyocera will take over cellphone operations, including personal-handy system operations, as well as employees in charge of the cellphone business, they said.
Last October, Sanyo and Kyocera struck a basic agreement on the sale. The two have since been trying to hammer out details of the deal, including its cost and how to handle Sanyo's cellphone-related patents.
The deal will give Kyocera access to Sanyo's marketing network in North America. Kyocera is keen on bringing its North American cellphone operations into the black on the strength of the acquisition of the marketing network, they added.
