European Commission approves Hon Hai Group to acquire Sharp shares

The European Commission issued a statement on June 25, approving the agreement of Hon Hai Precision Industry, which is owned by Taiwan’s Hon Hai Group, to acquire a controlling stake in Japan’s Sharp Display Products Corporation (SDP).

Sharp Display Products Co., Ltd. is a subsidiary of Japan Sharp Corporation and is mainly engaged in the manufacture of liquid crystal displays. At present, its products are all used in Sharp's production and business activities.

The European Commission said that after the investigation, it was found that both parties had a limited share in the liquid crystal display market, and Sharp and Hong Hai Precision Industry had very low overlap in the business of electronic product manufacturing. This acquisition will not cause market competition in the European Economic Area. Significantly affected.

In addition, after the transaction is completed, the screens produced by Sharp can also be used for Hon Hai products and provided to third parties, which in turn can promote market competition.

Hon Hai Group reached a cooperation agreement with Sharp in March this year. According to the agreement, Sharp will increase the issuance of 120 million shares to the four subsidiaries of Hon Hai Group, totaling approximately 67 billion yen (approximately US$8.1 billion).

Hon Hai Group will hold approximately 9.9% of Sharp's shares. In addition to capital cooperation, Hon Hai Precision Industry and Sharp will jointly operate Sharp's main LCD plant in Sakai, Osaka, and Hon Hai Precision Industry will eventually undertake 50% of the LCD screens produced in the Sakai City factory.

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