Foxconn to reportedly ink Sharp takeover deal this week


At the beginning of this year, it was reported that Foxconn has offered $5.1 billion to buy Sharp. However, the deal was delayed over the negotiation of the the bailout. Now, new reports are suggesting that both the companies are ready to ink the deal this week.

According to a Reuters report, Foxconn may discuss the deal at a board meeting on March 30 following which both the companies will finally sign the takeover deal on March 31st. The Taiwanese contract maker is set to cut its previous 489 billion yen ($4.3 billion) offer for newly issued Sharp shares by about 100 billion yen, as per sources from Reuters.

Foxconn which is currently Apple’s main contract manufacturer, could benefit once the acquisition is through. The deal could further boost the company as it is interested in expanding its business beyond assembly of products and logistics, by adding a wider array of components to its offerings. In addition, the funds from the deal could allow Sharp to move ahead on mass production of OLED screens. The acquisition comes at a time when Apple is reported to release a 5.8 inch iPhone with curved AMOLED display.

Author: Sneha Bokil

Sneha Bokil is a tech enthusiast and is currently using OnePlus 3T but she still treasures her Nokia N70 (M). You can follow her on Twitter @snehabokil and on Google+