Foxconn Technology Group Chairman Terry Gou said they would take control 66 percent in Sharp. The buy in valued around $3.5 billion. Both parties started the negotiation since 2012 but could not find an agreement. Sharp is an iconic electronic company from Japan, but they record losses in the last few years with 170 billion yen ending last Thursday. On the other hand, Terry Gou saw opportunities for Foxconn. Taking over Sharp will enable Foxconn to expand their business.
We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights – Terry Gou
It is not a regular practice for Japan company to be sold to foreign people. Previously, the Japan government and creditors willing to rescue Sharp from their financial crisis but Terry Gou refused to back down. Since then, he flew to Japan several times to meet with Japan’s government, Sharp’s board members and banks. The acquisition will open opportunity for Foxconn to sell their product instead of just making key components and products assembling for other brands.