Foxconn'south Head Pledges Turnaround at Sharp After Takeover

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Source:   —  April 02, 2016, at 2:08 PM

by driving modify at the struggling LCD panel and residence appliance maker, as the two companies signed a takeover deal after a one-month delay.

The head of Taiwanese contract manufacturer Foxconn pledged Saturday to turn around Japan'south Sharp Corp. by driving modify at the struggling LCD panel and residence appliance maker, as the two companies signed a takeover deal after a one-month delay.

Foxconn, also known as Hon Hai Precision Industry Co., is buying a sixty-six % share in Sharp for three hundred eighty-nine billion yen ($3.5 billion) in the first foreign takeover of a major Japanese electronics company. A giant in contract manufacturing, Foxconn assembles Apple iPhones and other products for name-brand companies.

The two companies held a signing ceremony Saturday at a large-screen LCD panel factory that they've jointly managed exterior the W Japanese city of Osaka since 2012.

"I look us as a catalyst for change," Foxconn founder and chairman Terry Gou said at a news conference following the ceremony. "If we cannot drive modify in Sharp, our global competitors will eat us alive."

Sharp, a boss in LCD technology and a maker of flat-screen televisions and bright appliances, has been hit tough by ferocious price contest for LCD displays.

Kozo Takahashi, the president of the 104-year-old Japanese company, said the infusion of capital from Foxconn would make better Sharp'south financial situation and authorize it to "invest in the new growth initiatives that were suppressed due to the financial challenges we've been facing in recent years."

Both Takahashi and Gou paid tribute to Sharp'south history of innovation, which includes the world'south first LCD calculator, and said they'd seek to marry it with the production and supply chain capabilities that Foxconn has developed in the intensely competitive field of electronics manufacturing.

"My direction of turnaround is clear," Gou said. "We'll focus on helping Sharp to transmute its technology into products in a speedy and cost-competitive way with high quality."

The final sale price is about twenty % less than the four hundred eighty-nine billion yen that Sharp said Foxconn had agreed to pay a mo ago. News reports declare that Foxconn was concerned about taking on extra liabilities that it learned about late in negotiations.

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