Foxconn expected to complete Sharp deal this month

Foxconn is expected to finalise a takeover deal for electronics firm Sharp by the end of this month, according to reports.

Reuters reported on Friday that Foxconn, which is known officially as Hon Hai, has reached consensus on “most points” with Sharp and has offered a deal worth  around 659 billion yen (€5.08 billion).

The Wall Street Journal reported that the two companies have cleared 90% of the hurdles and that Taiwanese electronics manufacturer Foxconn has signed a deal that gives it negotiating rights ahead of a Japanese fund that was also interested buying Sharp.

In a statement, Sharp confirmed that it had conducted negotiations with Hon Hai “regarding our management reconstruction” and that Hon Hai had extended the term of its offer to Sharp until February 29.

“Both parties will continue to negotiate in good faith and in a timely and expeditious manner regarding the final conditions of contract,” said Sharp.