“Taiwan’s Foxconn agreed to acquire Japan’s Sharp Corp. at a big discount to its original offer, capping a month of wrangling,” Makiko Yamazaki and J.R. Wu report for Reuters.
Foxconn “will pay about $3.5 billion for a two-thirds stake, cutting its initial offer by nearly $900 million following the emergence of previously undisclosed liabilities at Sharp,” Yamazaki and Wu report. “The deal marks the largest acquisition by a foreign company in Japan’s insular tech industry and the end of independence for a 100-year-old company that started out making belt buckles and mechanical pencils.”
Yamazaki and Wu report, “It also gives the world’s top electronics contract manufacturer control of Sharp’s advanced screen technology which it does not have, and helps strengthen its pricing power with major client Apple Inc.”
Read more in the full article here.
MacDailyNews Take: A big moment for Sharp with lots of work on a tough road ahead. Good luck!
Sharp Corp. liabilities list covered worst-case scenarios; takeover talks extended – February 29, 2016
Why Foxconn’s multi-billion-dollar deal for Sharp is dead in the water – February 25, 2016
Foxconn’s $5.1 billion bid for Sharp could be good for Apple, too – February 25, 2016
Apple supplier Sharp accepts Hon Hai’s $6.2 billion takeover offer; Hon Hai says deal on hold – February 25, 2016
Foxconn fast-tracks $5.5 billion Sharp takeover bid – February 4, 2016
State-backed Japanese fund in race with Foxconn to save Sharp – January 21, 2016
Hon Hai considering $1.7 billion stake in Sharp LCD business; to ask Apple to invest a ‘few hundred million’ – September 28, 2015
Hon Hai offers to buy Sharp’s LCD business, wants Apple funds – September 21, 2015
Apple suppliers Sharp, Foxconn in talks for LCD joint venture – August 24, 2015
Beleaguered Sharp’s problems present an opportunity for mighty Apple – May 15, 2015
Apple display supplier Sharp warns on ability to stay afloat after $1.9 billion loss – May 14, 2015
Apple iPhone display supplier Sharp boosts operating profit – August 1, 2014
Sharp dedicates entire LCD plant to Apple – June 30, 2014
Hon Hai in no hurry to finalize Sharp deal – June 26, 2013
Sharp to replace chairman, president after losses – May 14, 2013