Taiwanese electronics manufacturing giant Foxconn has announced it is delaying its expected takeover of Japanese electronics maker Sharp.
The news comes after Sharp announced its acceptance of a takeover plan by Foxconn earlier on Thursday. A statement from Foxconn on Thursday evening says that the company received a key document from Sharp the day before. Foxconn says that it will need to clarify the contents of this message and reach an understanding with Sharp before the deal can go forward.
Japan’s Nikkei Shimbun had reported that Sharp accepted Foxconn’s US$6.2 billion bid. Foxconn defeated government-backed fund Innovation Network Corporation of Japan in the bid. Japan has always been wary about having its prominent brands taken over by foreign companies.
Sharp had indicated on its official website that Foxconn has promised to keep the brand’s name, maintain Sharp’s independence, keep its workers and not to make Sharp’s technology public.