Foxconn parent firm buys Sharp
Japanese electronics manufacturer Sharp has been bought out by Foxconn owner Hon Hai Precision in a multibillion-dollar deal, it has been reported.
According to the Japanese business press, the Sharp board met on Thursday to agree to the deal. Shares in the company, which have been unpredictable in recent months, rebounded by around six per cent as the news broke.
"Sharp is strong in research and development while Hon Hai knows how to market products to customers such as Apple and it also has expertise in production," said Ritsumeikan Asia Pacific University technology professor Yukihiko Nakata, speaking to AFP.
The buyout is thought to be worth as much as $6.2bn (£4.4bn) and, if it goes ahead, will be the first major foreign takeover of a Japanese electronics manufacturer. However, Sharp has so far declined to comment on the speculation.
Sharp recently reported a nine-month net loss of more than $900m, with a slump in demand for smartphone screens and restructuring costs hampering its performance.