Foxconn Agrees to Buy Sharp After Slashing Original Offer

Taiwan’s Foxconn agreed to acquire Japan’s Sharp Corp at a big discount to its original offer, capping a month of wrangling that sowed more doubt over whether the two companies can work well together and fend off fierce competition from rivals. Foxconn, will pay about $3.5 billion for a two-thirds stake, cutting its initial offer by nearly $900 million following the emergence of previously undisclosed liabilities at Sharp. The deal marks the largest acquisition by a foreign company in Japan’s insular tech industry and the end of independence for a 100-year-old company that started out making belt buckles and mechanical pencils. It also gives the world’s top electronics contract manufacturer control of Sharp’s advanced screen technology which it does not have, and helps strengthen its pricing power with major client Apple Inc.