Foxconn Puts on Hold 6.2 Billion Dollar Acquisition Of Sharp
Foxconn has put its acquisition of Sharp on hold for now. The news come immediately after Japan-based Sharp announced that it had agreed to the buyout. According to the WSJ, Foxconn 11th hour flip-flop is due to concerns over Sharp’s financial future. According to WSJ sources Foxconn could be evaluating a 100-point list in the hopes that it can revive the deal.
The deal was supposed to be the largest acquisition of a Japanese company from an overseas purchaser. Sharp, apart from its TV business, is a leading supplier of a range of components for top tech companies. Foxconn a large consumer of parts from third parties(mainly Samsung and LG), seems to be keenly interested Sharp’s component and display panels business. This will help Foxconn significantly enhance its already high margins on each Apple device sold and also strengthen its electronics business under its own brand.