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Tuesday, 26 April 2016 00:02 - - {{hitsCtrl.values.hits}}
Japan’s Sharp Corp has recently signed a takeover deal by Taiwan’s Foxconn in what would be the largest acquisition by a foreign company in Japan’s insular technology sector.
Dozens of journalists crowded a media room at Sakai Display Products Corporation building in Sakai, Osaka Prefecture, Japan.
The Taiwanese firm, known formally as Hon Hai Precision Industry Co, has offered to invest 659 billion yen ($5.9 billion) in Sharp.
“As part of the new business strategy with Hon Hai Precision Industry Co, we have signed the deal today. It has taken a lot of effort to get here, and I thank President Terry and Honhai associates,” Sharp’s Chief Executive Officer Kozo Takahashi said at a news conference.
Sharp’s board earlier concluded a two-day meeting to discuss whether to accept an offer by the world’s largest contract electronics manufacturer over a rescue by a state-backed investment fund.
Although Terry Gou, the founder and Chief Executive Officer of Foxconn, declined to give specifics on the turnaround plan.
“My direction of turnaround is clear. We will focus on having Sharp transform its technology into products in a speedy and cost competitive way with high quality,” Gou said.
Century-old Sharp was once a highly profitable manufacturer of premium TVs and a favored screen supplier to Apple. But it has struggled in recent years as massive investments in advanced LCD plants backfired amid price competition with Asian rivals.
The deal comes after five years of courting by Gou, who sees ownership of Sharp as a way to better compete with Asian rivals such as Samsung Electronics Co.
Sharp’s liquid crystal display (LCD) panel technology is expected to help consolidate Foxconn’s position as the world’s biggest assembler of Apple Inc’s iPhones and iPads.
For Sharp, Foxconn’s ample funds will help stabilise its finances while the Taiwanese company’s global sales channels could help improve sales.
