Kyocera to Acquire Sanyo's Mobile Phone Operations
January 25, 2008
On January 21, Japan's Sanyo Electric and Kyocera announced that the two companies have reached a definitive agreement for Kyocera to acquire Sanyo's mobile phone operations, Japan's Jiji Press reported.
The two companies first reached a basic agreement on the deal back in October 2007. According to the final agreement, the transaction is slated to take effect on April 1, 2008. Except for Tottori Sanyo Electric, Sanyo's CDMA (Code Division Multiple Access) phone, PHS (Personal Handy-phone System) phone, base station, and other wireless communications system business will be transferred to Kyocera in entirety, including a staff of 2,000. Kyocera plans to develop its mobile phone business simultaneously under the dual brands of Kyocera and Sanyo. The possibility for future integration of the Sanyo brand into Kyocera, nevertheless, is not ruled out, according to Jiji Press.
Sanyo's existing distribution channels in North America, including its business tie with Sprint Nextel, will continue to be utilized alongside with Kyocera's own channels. Catering to its new business structure, Kyocera also plans to establish a new company in North America in addition to its present local unit Kyocera Wireless, according to Nikkei Electronics Asia.