Kyocera on on Monday agreed to buy Sanyo’s lossmaking mobile phone unit for Y40bn-Y50bn ($378m-$472m), creating the world’s sixth-biggest handset maker.

Sanyo, the lossmaking consumer electronics group that is being rehabilitated by Goldman Sachs, is trying to restore its profitability after three years of losses. It attempted to sell its semiconductor unit last year to a private equity consortium, but the deal fell through after both sides failed to agree on a price.