Kyocera is entering the final round of talks to acquire the mobile phone unit of Sanyo Electric, according to Japanese news site Nikkei. According to reports, Kyocera is looking to the buy the unit for 50 billion yen ($434 million). Combined, the two would create the world's seventh largest handset maker.

Sale of its mobile phone unit would be the latest step in Sanyo's restructuring endeavors to shed struggling business units and return to profitability. Earlier this year, Sanyo sold its stake in Sanyo Electric Credit to General Electric and is also seeking a buyer for its microchip business.

In the second quarter of this year, Kyocera was #10 on the list of the world's largest handset manufacturers, while Sanyo was #11. Kyocera stands not only to gain an increase in the world's market share from the deal, but also an increased presence in the U.S. market.