Foxconn, Apple’s major supply chain partner, is all set to acquire Sharp for roughly 700 billion yen (or $6.2 billion USD), according to a report from Nikkei Asian Review. The report claims that Sharp’s board has voted on Thursday morning to accept Foxconn’s offer, and plans to restructure its operations under the umbrella of acquiring company.
Sharp has finally accepted the offer after several failed negotiations between the two tech companies. Foxconn has made several failed attempts to acquire Sharp – a struggling electronics giant, with most latest offer of $5.3 billion coming in January this year.
Sharp is known for its television, home appliances, and other consumer product lineups. The company also makes display panels for a wide variety of smartphones. The company has also supplied displays for world’s most popular smartphone i.e. Apple’s iPhone. The list of suppliers for LCDs used in iPhone includes LG, Japan Display, and Sharp.
Foxconn’s major buyer i.e. Apple is rumored to be planning on switching to more power efficient OLED display panel switching from the current LTPS panels which the ones Sharp manufactures. It remains a mystery what Foxconn plans on doing for the company after the acquisition process is completed.
This acquisition is equally interesting for both the Apple and Sharp as well.