Sharp's $6.2bn takeover deal has been delayed

Foxconn's owner was on the verge of completing the acquisition...

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Empics / EMPICS Sport / PA

In the first foreign takeover of a major Japanese consumer electronics group, it emerged overnight that Sharp Electronics was to be acquired by Taiwan’s Hon Hai Precision Industry in a deal worth $6.2bn.

Hon Hai Precision is best known for its ownership of Foxconn, one of the major contract manufacturers of smartphones - it has pulled out of the deal.

"We will have to postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation,'' the Taiwanese company said in a statement.

The board of Sharp had decided to favour the sale, choosing the Taiwanese company over a lower bid from the Japanese State-backed Innovation Network Corporation.

The sale has caused controversy in Japan and sparked a debate about the implications of the country's electronics groups being sold to foreign buyers.

Sharp is best known for its display screens for outdoor advertising, televisions and mobile devices, edged close to bankruptcy four years ago.

The company is saddled with heavy debts and announced losses of over $900m for the eight-month period to last December.