Sharp is about to have a new owner, and instead of Innovation Network Corporation of Japan, it's going to be Foxconn—the same company that builds iPhones for Apple. Taiwan-based Foxconn's US$5.3 billion bid was about double what INCJ was offering, and seems to have been enough to overcome Japan's stigma of foreign investors.
Foxconn's bid for Sharp won out over INCJ
With its bid getting the green light, Foxconn wants to move quickly to wrap up the deal, according to the Wall Street Journal. If all goes well, Foxconn hopes to finish the transaction in the next few days.
Foxconn's strong push makes sense because there's still a chance the deal could fall apart, and Sharp isn't breaking off talks yet with INCJ. CEO Kozo Takahashi acknowledged Foxconn's offer is substantially better, but said he'll at least keep a dialog open.
The deal could help take Foxconn from being only a manufacturing partner with Apple and other companies and turn it into a parts supplier and manufacturer. Sharp currently supplies mobile device displays for Apple products, and Foxconn would no doubt like a piece of that action.
Foxconn could also start selling products under its own name once the deal is completed.
Terry Gou, Foxconn chairman, is meeting with Sharp executives today and the two companies have their legal teams working on contract details.