Foxconn Delays Sharp Acquisition

By Tom Allen

Foxconn and Sharp have denied setting a date to sign the formal acquisition agreement (Sharp Accepts Foxconn Bid). Nihon Keizai Shimbu, a Japanese news outlet, quoted sources who said that the two sides will finalise a deal next week, but the companies have said that nothing has been arranged.

According to a statement, the firms are trying to reach an agreement ‘based on practical principles’ as soon as possible.

Foxconn delayed signing the deal due to liabilities that had to be clarified; local reports say that these are contingent liabilities, which only become a liability if a particular situation occurs. The sources claim that the liabilities are valued at ¥300 billion – ¥350 billion ($2.6 billion – $3 billion).