The Chinese antitrust agencies approved the deal between Foxconn and Sharp, estimated at $ 3.8 billion
The Taiwanese company Foxconn announced that the antitrust authority of China has approved its acquisition of the Japanese company Sharp. Thus, the obtained final approval needed to complete the transaction worth $ 3.8 billion.
Verify that the result of the deal, Foxconn will receive a 66% stake in Sharp. More precisely, the share of Hon Hai Precision Industry, better known as Foxconn, will be 26,14%, a subsidiary of the company Foxconn Far East — of 18.41%, a subsidiary of Foxconn Technology — 13,00%, and more than 8.45% receive SIO International Holdings.
According to a source, gaining control of Sharp and access to advanced technologies for the production of liquid crystal displays, the world’s largest contract manufacturer of electronic products, hopes to strengthen ties with its main customer, Apple.
The transaction is planned to finish in June, but the Chinese Antimonopoly body did not have time the time to complete her study. Related investor concerns that the purchase may fall, led to the fact that the shares in Sharp in a short time was worth even the lower prices inherent in the transaction.