Foxconn, one of the world's largest electronics suppliers and manufacturers in the world has placed a bid for $5.1 billion to buy Japanese electronics company Sharp, according to a source in a report by Bloomberg.
The company reportedly attempted to purchase Sharp back in 2012, but failed to do so when disagreements about management came up. And in September 2015, Foxconn tried again, aiming to purchase the company's LCD business unit.
This latest bid comes after Sharp turned to the Innovation Network Corp. of Japan (INCJ) to help fund the company ahead of its latest round of debt payments. Foxconn is now looking into taking over the whole operation of Sharp, acquiring over 48,000 employees in 29 offices, if talks go through.
Foxconn functions as a product assembly and logistics company which manufactures and supplies electronics for major industry players like Microsoft, Apple, and Sony. If the deal goes through, Foxconn is interested in expanding its business. As a report from Quartz pointed out, the possible acquisition could enable the company to start making LCD screens, a product offered by Sharp, which could help reduce manufacturing costs.
Sharp has been well known for a range of products including its television sets and solar panels. However, financial reports have been on the downside recently for the company. In a desperate attempt to save it, Sharp has asked its employees to buy its own products, and has even taken the time to devise a plan on how much employees should spend.
A decision on whether the bid will be accepted by Sharp is expected by the end of January.