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Foxconn Completes Deal For Sharp

Foxconn Technology Group’s acquisition of Sharp Electronics is finally official.

The $3.8 billion deal for the Tokyo-based electronics maker closed earlier this month with Foxconn assuming a 66 percent ownership stake.

Foxconn’s Tai Jeng-wu becomes Sharp’s new chief executive after current CEO Kozo Takahashi resigned. Foxconn is led by Taiwanese entrepreneur Terry Gou.

The deal elevates Foxconn’s presence in the finished consumer electronics market after mostly being known as an assembler of products for other technology companies, most notably Apple. Sharp supplies display panels for major smartphone makers including Apple, giving Foxconn a market advantage boost in the supply chain.

The deal, originally announced in March, was delayed by the Chinese government’s antitrust investigation.

Analysts are expecting job cuts and a general tightening of purse strings at Sharp, which has been suffering from low margins and increased competition in its core CE businesses. Gou is on the record with his intentions to expand Sharp’s presence in the OLED panel market currently dominated by LG.