Foxconn seals Sharp buyout deal on vastly reduced terms


Taiwan’s Foxconn Technology Group has completed the buyout of Japan’s Sharp Corp. for a knockdown price of 389 billion yen ($3.5 billion) – some 100 billion yen below a previous agreement first announced in February.

The deal brings to an end weeks of fraught negotiations and delays caused by certain undisclosed liabilities at Sharp that forced Foxconn to renegotiate its offer to secure a 66% stake in the firm.

The total amount paid for the acquisition is likely to increase, especially pertaining to the purchase of remaining Sharp stocks. This could amount to a further 100 billion yen investment on the part of Foxconn.

Sharp Corp. expects to post a fiscal year operating loss of 170 billion yen ($1.51 billion) this week, which serves to outline the precarious financial position that the company has found itself in.

Its solar business was one of the first "canaries in the mine", foretelling troubles for the electronics giant that have since come to pass. Earlier in the year it was rumored that Japan’s Solar Frontier had expressed an interest in snapping up Sharp solar, but Solar Frontier CEO Atsuhiko Hirano confirmed to pv magazine earlier this month that no serious discussions had ever taken place.

When news first broke that Foxconn had been chosen as Sharp’s buyer, Bloomberg New Energy Finance (BNEF) analyst Takehiro Kawahara told pv magazine that the deal would likely mean more emphasis on Sharp providing integrated solar, storage and energy management systems for the commercial and residential space.

"It will also likely mean divesting from PV manufacturing, particularly in shutting down older plants in Japan that are no longer economically viable," he said, adding that the Sharp brand name for solar modules is likely to survive.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.