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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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...
Read More