After a long tussle and contemplation, Taiwanese multinational Foxconn has finally agreed to acquire Japan’s Sharp Corp. Through this endeavour, they are achieving a big discount to the original offer.
Both the companies have held separate board meetings on Wednesday to decide on the formalities and finally give a final approval of the deal. The information was passed on by an inside source who did not wish to reveal his identity.
Sources have mentioned, Foxconn, earlier known as Hon Hai Precision Industry Co, is all set to cut down on its initial 489 billion yen ($4.3 billion) offer for a two thirds stake by about 100 billion yen; as quoted by Reuters in saying.
The deal will record the biggest acquisition by a foreign company in Japan’s insular technology sector. It is also the end of independence for a century old company which stepped in the business of belt buckles and mechanical pencils.
“If you are talking about two years, it will be difficult. Three years, there is potential. Five years, then definitely,” Analyst with Daiwa-Cathay Capital Markets, Taipei, Kylie Huang was quoted by Reuters in saying.