A few weeks ago Sharp agreed to sell a two-thirds stake to Foxconn (Hon Hai Precision) for $5.8 billion - but following new disclosed liabilities of around $2.7 billion the deal was canceled, and today the two companies announced a new, in which Foxconn will pay $3.5 billion.
This is the largest acquisition ever by a foreign company in a Japanese tech company and it ends the independence of a 100-year-old company. Foxconn also received an option to increase its stake in Sharp in 2017.
Foxconn aims to boost its product offerings to Apple - and this deals will make Foxconn Apple's main contract manufacturer and component supplier. Sharp is a leader in IGZO-based LCD production, and is also developing OLED technologies, although the display maker has no immediate plans to start producing AMOLED panels.
According to reports Sharp and Foxconn do plan to initiate an AMOLED project following the acquisition. The two companies need to be able to commence OLED mass production by 2018 if it wants to supply those panels to Apple's first OLED phone.
