March 30, 2016 – Foxconn, formally known as Hon Hai Precision Industry Co, will pay about $3.5 billion for a two-thirds stake in Sharp, cutting its initial offer by nearly $900 million according to a Reuters report.
The reduced offer followed more than a month of back-and-forth negotiations following the emergence of previously undisclosed liabilities at Sharp. The initial offer, announced in early February, was for $5.6 billion, but after revealing nearly $3 billion in liabilities, the deal was put on hold.
Foxconn, a major contractor for Apple among others, reportedly seeks to expand its market. Its acquisition of Sharp will allow it to use that firm’s technology to make smartphone screens, the most expensive components of the devices.
There was no mention of Sharp’s hardware business, although the February reports said that Foxconn CEO Terry Gou promised to keep Sharp intact.
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