Foxconn, Sharp deal delayed
February 25, 2016
By Chris Forrester
Taiwan’s technology giant Foxconn had looked set to take control of Japan’s electronics business Sharp in a $4.3 billion (€3bn) take-over. The end result would see Foxconn owning about two-thirds of Sharp’s shares.
However, the deal has been thrown into question by a last-minute delay regarding new information from Sharp which needs to be clarified. Foxconn said in a statement: “We will have to postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation.”
It is understood that the deal has been put on hold following a review of Sharp’s future financial risk.
The news comes after a reportedly heated two-day board meeting at Sharp’s HQ while it decided on whether to accept the deal.
Foxconn is one of the world’s largest specialist technology companies and, for example, assembles many of the world’s iPhones for Apple.
Sharp is one of Japan’s oldest businesses and was founded in 1912. Its specialties these days include TV set manufacturing and liquid crystal displays.