The fair trade commission has approved the proposal for a merger of Taiwanese electronic manufacturing giant Foxconn and Japanese technology corporation Sharp.
According to the co-operation plan that Foxconn and Sharp submitted in early April, Foxconn (Far East) Limited, a subsidiary of Foxconn will acquire 44.55% of Sharp’s common stock. Foxconn will also procure OLED panels and camera modules from Sharp until mid-2019.
Fair trade commission vice-chairman Chiu Yung-ho said that the commission approved the merger proposal after their analysis showed the move will not lead to a monopoly in Taiwan’s market.
“From a market share perspective, the merger of these two corporations won’t lead to a monopoly. At the same time, the merger will allow them to complement each other in areas such product line-up, technology, and customer base," said Chiu. "It will also enhance their R&D prowess and prompt new creativity. If that is the case, the move could be a boost to all the related supply chains in Taiwan. Therefore, we will not prevent the two corporations from merging.”
Foxconn and Sharp will begin the merger process soon now that the merger is approved.