Sanyo To Sell Mobile Phone Business to Kyocera |
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12th October , 2007
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In accordance with the agreement reached in today's meetings, SANYO has granted Kyocera priority negotiating rights, and both companies have signed a contract signifying this basic agreement. Details of the agreement are as follows. SANYO, along with the current Mid-term Management Plan (FY2005 - FY2007) announced on November 18, 2005, placed its mobile phone business as a core business. Since that time, the Company has made efforts to implement measures to strengthen the business through reforms to cost structure, such as lowering production costs by moving operations overseas, as well as intensifying competitiveness. However, following the decision to set this as a core business, there has been a rapid change in the business environment, and a fundamental review was undertaken as to how the business fits in with the Company's entire business portfolio. As a result of this review, SANYO reached a decision that optimization of this business can be achieved not by continuing to develop it as a non-consolidated entity, but by taking necessary steps to strengthen the management base by transferring the business to another company. Under these circumstances, SANYO has granted Kyocera priority negotiating rights, and signed a basic contract with Kyocera agreeing to continued negotiations. Overview: |
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ASIA Japan : SANYO Electric announced it has reached a basic agreement to continue further negotiations with Kyocera Corporation (Kyocera) regarding the transfer of SANYO's mobile phone business, upon resolutions settled in each company's respective Boards of Directors meetings.