Manufacturing giant Foxconn Technology Group of Taiwan has reached an agreement with Sharp Corporation of Japan, purchasing a controlling stake of 66% for $3.5 billion US. Foxconn purchases Sharp with the objective of enhancing the brand and maximizing the quality of its products. In a joint statement, the companies promised a commitment to “restoring profitability and strengthening operations to once again make Sharp a leader in the global electronics arena and a world-class company with a positive outlook”
Future Plans for Sharp
A statement issued by Sharp Imaging and Information confirmed that Sharp will remain operationally independent and its shares will continue to be traded on the Tokyo Exchange. Foxconn will also invest more than $350 million in Sharp’s Business Solutions Group.
Sharp stated that they are seeking a global expansion of the business and that Foxconn will invest approximately $178 million US on expanding its MFP sales distribution, in order to expand and stabilize Sharp’s North America and European revenue base.
What this means for Foxconn
Analysts have said Foxconn is taking on a significant financial risk after reporting its own record net profit last year. Sharp currently estimated an operating loss of 170 billion yen for the year in contrast to its earlier profit forecast of 10 billion yen.
Terry Gou, Founder and CEO of Foxconn, has said: “We are confident about our future together…We have much we want to achieve and I am confident we will unlock Sharp’s true potential and together reach great heights.”
Brock Office Automation is Niagara’s authorized Sharp dealer serving Niagara and Hamilton. For more information or to find out how Brock OA can help you with your office needs check out the link below.