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Taiwan: FTC approves Hon Hai-Sharp deal

By  |  June 1, 2016

The Fair Trade Commission said Wednesday that it has given a greenlight to a deal in which Taiwan-based Hon Hai Precision Industry acquires a majority stake in Japan’s financially struggling Sharp Corp., saying that the acquisition is unlikely to hurt market competition.

The FTC approval came the day after the deal got the nod from the Investment Commission, which said that the acquisition price is fair.

On April 2, Hon Hai, the world’s largest contract electronics maker, signed the deal with Sharp to acquire a 66 percent stake in the Japanese firm for about US$3.5 billion. After completing the acquisition, Hon Hai is expected to become Sharp’s largest shareholder.

Under the terms of the deal, Hon Hai and its wholly owned subsidiary Foxconn will take a 44.55 percent in Sharp, while Hon Hai Chairman Terry Gou and Foxconn Technology pte, a Singapore unit of Hon Hai Technology Group, will take the remainder.

Full Content: Focus Taiwan

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