After a delay of a month, Foxconn has finally agreed to buy Sharp at a price lower, as expected. The Taiwanese contract maker confirmed that it is paying close to 389 billion yen ( $3.5 billion approx.) for a majority 66 percent stake in Sharp.
The deal has been sealed at a much lower price as it was proposed at $5.8 billion and was pulled at the last minute back in February. Sharp, once a leader in high-end displays for smartphones and TVs, has struggled with pricing pressure from Asian rivals. The company currently has 48,000 employees across 29 offices. With this acquisition, Foxconn will be looking to boost its manufacturing capabilities by leveraging Sharp’s technologies and facilities.
Terry Gou, Founder and CEO of Foxconn, said,
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.”
Kozo Takahashi, President and CEO of Sharp, said,
I am pleased with our decision today to form a strategic alliance and merge both forces between Sharp and Foxconn to accelerate innovation with the “creativity and entrepreneurial spirit” of both our companies.”