Foxconn, a company best known in tech circles for manufacturing Apple's iPhone, has finalized its buyout of Japanese electronics company Sharp. The deal was finally inked after weeks of difficult negotiation, and marks the largest acquisition by a foreign company in Japan's tech industry.
Bloomberg reports the original plan was for Foxconn to buy Sharp for around $4.3 billion. However, after learning of Sharp's financial woes, Foxconn decided to reevaluate the deal. The company ended up paying about $3.5 billion for a 66% stake in Sharp. Yahoo says that in addition to the price of the acquisition, Foxconn is expected to shell out an additional $1.7 billion buying "preferred stock" from Sharp's main banks.
The revised agreement also includes a backup plan that would allow Foxconn to buy Sharp's display division should the buyout fall apart before October 5 of this year. Bloomberg speculates that Foxconn CEO Terry Gou wants the company to start selling its goods directly to consumers instead of serving as a manufacturer for other companies. Additionally, Yahoo guesses the buyout could give Foxconn some pricing leverage against Apple, who buys a good portion of its displays from Sharp.