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China gives green light to Foxconn's takeover of Sharp

Staff Writer |
Hon Hai Precision Industry, also known as Foxconn Technology Group, said that China approved its $3.5 billion acquisition of Sharp.

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This is bringing to a close the legal chapter of the Taiwanese contract manufacturer's pursuit of the electronics maker.

Foxconn originally planned to inject funds into Sharp by the end of June, but the deal was stalled after China's Ministry of Commerce took longer than expected to finish its antitrust assessment.

he agency did eventually approve the takeover within a three-month review deadline.

According to the deal Foxconn and Sharp signed in early April, Foxconn and its affiliates will take a 66% stake in the Japanese company for 388.8 billion yen ($3.5 billion), with 200 billion yen allocated for the development of advanced OLED panel technologies that Apple may adopt in iPhones starting next year.

Foxconn and Sharp also agreed that the Taiwanese company has until Oct. 5 to make the payment and complete the acquisition.

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