Foxconn takeover of Sharp to be sealed this week

After lengthy negotiations, Foxconn and Sharp are said to have agreed on the terms of a takeover. The papers are rumored to be signed this week, and Foxconn will pay approximately $3.1 billion to acquire Sharp.

This is reported by the generally well-established news agency Reuters. The intention is that a meeting will be held next Wednesday at both companies at which the board of directors must approve the terms of the acquisition. The deal will then be officially sealed on Thursday, Reuters sources said.

Initially, the acquisition should have been completed last month, when Foxconn placed a bid of approximately 5 billion euros on the table. However, new financial information came on the table that caused Foxconn to significantly lower its offer, to a figure of about 3.1 billion euros, according to rumours. Nevertheless, Sharp seems to agree.

Sharp has been struggling with disappointing financial results for years. As a result, the company has had to cut jobs several times. With the acquisition, Foxconn would like to maintain LCD supply for its smartphone and tablet customers. The company has had a minority stake in Sharp for years and a joint venture for the production of LCDs was previously set up.