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Foxconn wants to buy an unprofitable division Sharp for the money Apple

The iPhone and iPad manufacturer, Taiwanese company Foxconn, made of Sharp’s proposal to purchase the business on the production of liquid crystal panels. It is reported by news Agency Reuters with reference to Japanese business daily the Nikkei. Interestingly, Foxconn expects to receive a competitor for Apple’s money.

Japanese Sharp was once a very successful manufacturer of LCD televisions upper segment and supplied panels to other companies but tough pricing pressure from competitors has changed the situation. Passing this market to competitors, Sharp tried to make a bet on displays for mobile devices, but the price is too quickly reduced, resulting in the company suffering losses. In the second quarter of the current year operating loss Sharp amounted to 282 million dollars.

Investors and analysts have called on the leadership Sharp reforming unit for the production of LCD screens and consumer electronics. CEO Kozo Takahashi initially resisted the pressure, but in July announced its openness to large-scale restructuring. In particular, he admitted the possibility of separation of the display businesses in a new company with subsequent transfer of the controlling interest partner and raise funds from outside investors.

According to available data, in Sharp plan to consider the possibility of obtaining investment from Foxconn after associated with the issuance of screens business will be highlighted in a new company. Also Japanese vendor may sell its stake in a joint venture with Foxconn, located in Sakai (Japan) and engaged in the manufacture of panels for televisions.

The sum of transaction on purchase by company Foxconn unprofitable activities Sharp is still unknown. But it is known that money to buy Foxconn expects to receive from Apple. The irony is that the American Corporation is the primary customer for the products specified OU Sharp.

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“We are considering various options related to the display business, but we refuse to comment on any of them,” said the news Agency in the press service of Sharp. In Foxconn also refused to comment on the message about the potential purchase.

The restructuring program Sharp is for three years and foresees an investment of approximately $ 2.3 billion. A significant portion of this amount is provided in the form of loans to banks Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ.

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