Foxconn pays £2.5bn to swallow Sharp in cut-price takeover deal
Hon Hai hooks up with alternative to flattening mobe markets
Chinese iPhone assembler Foxconn is to swallow Japanese monitor biz Sharp for ¥389bn (£2.5bn) – around £625m less than it had previously been willing to cough up.
Under the terms of the deal, Foxconn's daddy Hon Hai will gain a controlling stake of 66 per cent in Sharp.
The takeover beat a proposal by the Japanese government to bail out the ailing company with a state-backed fund.
According to the Japan Times, Sharp is expected to report a loss of ¥200bn (£1.2bn) for its fiscal year 2015.
Last month the long-awaited merger was put on hold after the Japanese outfit passed new info to Foxconn, reported to show a 300 billion yen (£1.85bn) liability in its accounts.
In a joint press release they said: "The culture of both of our companies is defined by hard work, creativity and innovation.
"We are committed to restoring profitability and strengthening operations to once again make Sharp a leader in the global electronics arena and a world- class company with a positive outlook."
Terry Gou, chief exec of Foxconn, said: “We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights.”
Kozo Takahashi, President and CEO of Sharp, said the deal will form a strategic alliance and merge both forces between Sharp and Foxconn "to accelerate innovation." ®