Sharp and Foxconn to hold a board meeting for signing a takeover deal next week

Japan: Foxconn, a Taiwanese electronics contract manufacturer is set to take over a stake in the Japanese electronics manufacturer, Sharp Corporation in order to deploy Sharp’s advanced screen technologies into its products.

After a long delay over this acquisition, it has been announced that the companies will be holding a board meeting next week in order to fulfil the takeover deal.

This deal will help Foxconn in strengthening its bargaining power with Apple Inc., the major client of the company.  In addition, the acquisition will enable Sharp Corporation to access the Taiwanese firm’s wide distribution channel. Moreover, Foxconn will also provide desired funds to the company for initiating the mass production of OLED (Organic Light Emitting Diodes) screens in the upcoming years.

Therefore, Foxconn is ready to amend its previous offer of USD4.3 billion for the recently issued shares of Sharp Corporation by about USD864.8 million. Sharp preferred Foxconn over the Japan-based state-bucked fund, Innovation Network Corporation, as its bidder in February, since Innovation Network proposed to merge with Sharp’s rival company, Japan Display.

TechSci Research depicts that this agreement will boost the growth, profitability and deployment of new & innovative techniques.