Foxcon agrees to acquire Sharp for $3.5 billion

3/30/2016 Afnan Ali Awan , Foxconn , News , Sharp 0 Comments

Today, Foxconn (the company which assembles iPhones) has agreed to acquire majority stakes (approximately two-third states) of Sharp (the company which produces iPhone displays) for $3.5 billion. After, almost a month of bargaining both companies have finally agreed to the takeover of Japanese Manufacturer Sharp by Taiwanese Company Foxconn.

It looks like Hon Hai Precision Industry Co also known as Foxconn has succeeded to get a lower price tag for the acquisition of the Japanese Company Sharp.

Foxconn will pay 389 billion yen or $3.5 billion to the financially struggling Japanese Company Sharp in order to own approximately 66 percent stakes of Sharp which probably could increase to 72 percent by 2017.

Apart from manufacturing iPhone displays Sharp also manufactures numerous consumer products in Japan. Sharp is one of the most popular manufacturers in Japan. But on a global scale, it is not very famous.

After the Foxconn take over Sharp will increase its display producing potential and also invest in OLED display technology.

"I am thrilled by the prospects for this strategic alliance and I look forward to working with everyone at Sharp. 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."

“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,” said Foxconn founder Terry Gou.

The acquisition is said to be signed on Saturday. A news conference will also be held in Osaka with both Foxconn founder Terry Gou and Sharp CEO Kozo Takahashi.