Foxconn’s Sharp deal hits last-minute problem
Taiwanese company puts first foreign takeover of a major Japanese electronics maker on hold
Taiwan’s Foxconn put its takeover of electronics maker Sharp on hold on Thursday after it said it had received “new material information” from the Japanese company, throwing into doubt what was set to be the biggest takeover by a foreign firm in Japan’s technology sector.
Loss-making Sharp announced earlier on Thursday that it had agreed to be bought by Foxconn, a contract manufacturing firm that is a major supplier of iPhones to Apple. But, in a separate statement issued just hours later, Foxconn said it would not sign until it had clarified terms.
It did not elaborate.
Two sources said the Japanese group had contingent liabilities that amounted to “hundreds of billions of yen”.
That issue would have to be resolved before a deal could be finalised, they said.
The sources did not elaborate on the nature of the liabilities or the exact amount.
A spokesman for Foxconn, known formally as Hon Hai Precision Industry, declined to comment on the issue. Sharp also declined to comment.