Foxconn pays £2.5bn to swallow Sharp in cut-price takeover deal

Hon Hai hooks up with alternative to flattening mobe markets

Chinese iPhone assembler Foxconn is to swallow Japanese monitor biz Sharp for ¥389bn (£2.5bn) – around £625m less than it had previously been willing to cough up.

Under the terms of the deal, Foxconn's daddy Hon Hai will gain a controlling stake of 66 per cent in Sharp.

The takeover beat a proposal by the Japanese government to bail out the ailing company with a state-backed fund.

According to the Japan Times, Sharp is expected to report a loss of ¥200bn (£1.2bn) for its fiscal year 2015.

Last month the long-awaited merger was put on hold after the Japanese outfit passed new info to Foxconn, reported to show a 300 billion yen (£1.85bn) liability in its accounts.

In a joint press release they said: "The culture of both of our companies is defined by hard work, creativity and innovation.

"We are committed to restoring profitability and strengthening operations to once again make Sharp a leader in the global electronics arena and a world- class company with a positive outlook."

Terry Gou, chief exec of Foxconn, said: “We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights.”

Kozo Takahashi, President and CEO of Sharp, said the deal will form a strategic alliance and merge both forces between Sharp and Foxconn "to accelerate innovation." ®