Foxconn is buying Sharp for $3.5 billion less than originally expected

Foxconn buying Sharp

Foxconn is acquiring Sharp for $3.5 billion less than originally expected.

The deal arrives nearly one month after Sharp’s deal was put on hold by Foxconn.

In a statement, Foxconn confirmed that it is paying close to 389 billion yen (around $3.5 billion) for a majority 66% stake in Sharp.

Foxconn originally offered $6.2 billion but then announced that it had some concerns surrounding the viability of the Sharp business and its recent financial troubles.

The deal is still the largest overseas investment in a Japanese company. Sharp recently rejected a takeover bid from Japanese state-backed Innovation Network Corp, which had proposed splitting Sharp and its display business, and integrating the latter into Japan Display, an LCD joint venture between Sony, Toshiba, and Hitachi.

The deal will allow Foxconn to boost its manufacturing capabilities with Sharp technology, specifically with its heralded low-power display business. That technology could help strengthen Foxconn’s business with its biggest customer — Apple. While also finding new customers for its production facilities.

“I am thrilled by the prospects for this strategic alliance and I look forward to working with everyone at Sharp,” Terry Gou, Foxconn CEO and founder, said in a statement.

“We have much that we want to achieve and I am confident that we will unlock Sharp’s true potential and together reach great heights,” he added.