Foxconn's $4.3 billion takeover of Sharp suddenly placed on hold after announcement

Foxconn (Image credit: Bloomberg)

Sharp announced that a take over by Taiwanese manufacturing giant Foxconn has been agreed to the sum of $4.3 billion, but hours after release Foxconn stated that the deal has been placed on hold. Having Foxconn take over the troubled Japanese technology company would be the first time a foreign company has taken control of a major Japanese electronics firm.

The reasoning behind the delay is due to the future financial stability of Sharp. Should Foxconn go ahead and acquire the Japanese firm, it would allow the manufacturer to better compete on the global stage with a strong research and development base to integrate into its production arm.

As reported by the BBC:

"A takeover by Foxconn could help Sharp sell its liquid crystal display panels elsewhere in the region and inject fresh funds and ideas into the ailing electronics maker. But turning Sharp around won't be easy. Even after two bailouts it has been unable to turn its fortunes around."

This deal could also favor Apple, with Foxconn being a major manufacturing partner. Having Sharp display tech at hand would allow Apple and Foxconn to rely less on competitors for components.

Rich Edmonds