Sharp Accepts $6.24 Billion Takeover Offer From Foxconn

Sharp Accepts $6.24 Billion Takeover Offer From Foxconn

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Sharp's board has accepted a ¥700 billion ($6.24 billion) takeover offer from Foxconn, reports the WSJ.

Foxconn was previously considered an underdog in negotiations but it offered to invest significantly more in the company than Innovation Network Corp, a fund backed by the Japanese government.

In Japan, the Sharp case sparked debate about whether the country should follow Prime Minister Shinzo Abe’s call to open up to more overseas investment. Japan has been reluctant to let a major domestic company go into foreign hands, and many people had argued that the 103-year-old Sharp should go to a Japanese buyer. Japan’s minister of economy, trade and industry told reporters Thursday he hoped Sharp would develop under Foxconn and believed that jobs and the regional economy would be protected.

Foxconn has promised to keep the company intact and avoid major layoffs. The deal still needs to be approved by shareholders.

The acquisition will allow Foxconn to not only assemble the iPhone but also supply displays for the device. Notably, Sharp makes 95% of the world’s organic light emitting displays, and Apple is widely rumored to be working on an iPhone with an OLED display.

More details in the report linked below...

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Sharp Accepts $6.24 Billion Takeover Offer From Foxconn

The Truth - February 25, 2016 at 11:52am
I find it humorous when once powerful nations try to block cooperate buyouts, because the company is from a country they once subjugated. These countries even involve their country's leaders. First, it was India TATA motors trying to buy Land Rover and Jaguar. Now, it's Taiwan's Foxconn trying to buy Japan's Sharp.
They can't handle it - February 25, 2016 at 6:43pm
Here here
JuergenWest - February 26, 2016 at 6:07pm
Haha, you kind of have a point there. Germany's motto towards Britain for a while was "to beat them, buy them". For a while and maybe even still, the Germans had taken over many a major British company and saved them from failing and disappearing. Bentley, Rolls Royce, Rover, Mini, etc got snatched up by VW and BMW, etc.