Price drop! Foxconn – Sharp takeover deal finalized at $3.5 billion
It is now reported that the two have reached an agreement and the deal is going to be finalised at $3.5 billion – almost half the original price from just a month ago.
A Japanese government-backed consortium of investors did offer Sharp a hand, since Japan is apparently not a fan of some of its largest businesses being sold to a foreign company. The assistance offered was in the form of a $2.6 billion cash infusion and a $1.78 billion line of credit, but ultimately, Sharp's management decided to go for a sale altogether, thus becoming the first major Japanese electronics firm being taken over by a foreign investor.
Foxconn is a smartphone assembler, but not much of a part maker. Thus far, it has made Apple's products after getting all the parts from other OEMs, then soldering and putting them together. Sharp used to be the main source of displays, so in this takeover, Foxconn takes a step towards vertical integration.