The Wall Street Journal-20080122-Sanyo to Sell Mobile-Phone Unit to Kyocera
Return to: The_Wall_Street_Journal-20080122
Sanyo to Sell Mobile-Phone Unit to Kyocera
TOKYO -- Sanyo Electric Co. agreed to sell its struggling mobile- phone operations to Kyocera Corp., a deal that reflects the growing influence of Goldman Sachs Group Inc. and other large Sanyo investors.
Sanyo's mobile business will be sold for about 40 billion yen, roughly $375 million, on April 1, the start of the Japanese companies' next fiscal year. The long-anticipated sale is a sign that Goldman and Daiwa Securities SMBC Co., the wholesale unit of Daiwa Securities Group Inc., are making progress in reshaping Sanyo. They funded the bulk of a 300 billion yen Sanyo bailout in 2006.
The deal will make mobile phones Kyocera's largest business, though it will be hard-pressed to maintain its high overall margins as it looks to integrate Sanyo's operations and compete in the U.S. and Europe.
