Following several years of financial woes, Sharp has announced its acceptance of a $4.3bn (£3.08bn) takeover by Taiwanese organisation, Foxconn.
The announcement followed a two-day meeting involving Sharp’s board which was called to discuss competing takeover bids. In case you didn’t know, Foxconn is responsible for the assembly of the majority of the world's iPhones, in addition to many other highly popular consumer goods.
The significance of the takeover, in a broader sense, is that it’s the first foreign takeover of a major Japanese electronics company and probably a good indicator of the wider struggle they are facing under increasing competition from other far eastern economies.
Despite its major debts, Sharp is still one of the leaders in LCD display technology, which is obviously a key asset for Foxconn to take on board.
"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. Together they can go global," Yukihiko Nakata, a technology professor and former Sharp engineer told AFP news agency.
The takeover might well help Sharp sell its panels elsewhere in the region and thus provide new funds for the company but two previous rescue attempts from Japanese banks have obviously not proved successful. Foxconn initially offered to invest in the Sharp in 2012 but talks proved unsuccessful.
Latterly, the companies American operations were sold off to Hisense, while a buyer couldn’t be found for the European brand.
Source: BBC News
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