Japanese electronics manufacturer Sharp Corp. is currently struggling to maintain itself on the market, so the buying offer made by Foxconn Technology Group, for 600 billion yen, which roughly translates to $5.1 billion, should be more than welcome, says Bloomberg.
A person familiar with the talks between the two companies confirmed the possibility of a deal, which, if concluded, could be the biggest acquisition since 2009 for Foxconn.
Maybe the second buying attempt will go better for the manufacturer
Sharp is expected to take a decision regarding the offer until the end of the month. As for Foxconn‘s point of view, no public declarations were made, as Chu Wen-min, the company’s spokesman declined to comment.
This isn’t the first time when Sharp receive such offer from the manufacturer of Apple’s iPhones, since they tried a similar move back in 2012, but the talks didn’t reach a common point, after both parts failed to agree on management control.
In 2015, the companies started considering the deal again, after Sharp’s decision of turning back to Innovation Network Corp. of Japan, a government-backed company, in order to obtain funding for covering their debt payments.
The deal could strengthen Foxconn’s current agreements with manufacturers
Currently, Foxconn is looking forward to expanding its business, doing more than just assembling products and logistics. If the Sharp deal is completed, they would be able to provide displays for customers like Apple, Amazon or Xiaomi, since the Japanese company is one of the biggest names on this market.
“There need to be core products around which Sharp can build a market position. What those will be isn’t clear, regardless of which side they join,” said chief fund manager at Ichiyoshi Investment Management Co., Mitsushige Akino. “Outside of short-term speculators, most investors will stay away from Sharp’s shares until the final details are settled.”