Electronics manufacturing Sharp Corp agreed to get acquired by Taiwan’s Foxconn Technology Group for ¥700b ($6.2b), preferring its offer over a state-backed fund Innovation Network Corp of Japan.
Ailing Sharp, which was saddled with debt and losses, had two competing offers. Incidentally, INCJ’s plan was to acquire Sharp to retain its national identity and sell off certain businesses, much to the detriment of Sharp. On the other hand, Foxconn’s offer allows the company to operate without any divestments.
Foxconn’s Chairman Terry Gou rationale for acquiring Sharp was to broaden its ambit of products and to transform it into a company which also makes electronics components and devices.
Shares of Sharp jumped 5.8% on the Nikkei on the news.