Yesterday we reported that Foxconn would be taking over Sharp’s business for $6.4 billion. Considering that the initial reports suggested that Sharp was resistant to Foxconn’s plans due to Foxconn not being a Japanese company, it was quite an achievement for the company which would no doubt help make their services to companies to Apple even more invaluable.However it seems that less than a day since the initial report, a new report from The Wall Street Journal has revealed that Foxconn’s plans to acquire Sharp could have run into some issues and could be potentially delayed. While Foxconn did not elaborate as to why the deal might be delayed or in jeopardy, it has been suggested that this is because of information that Sharp disclosed only after.
It seems that Foxconn was giving a list of 350 billion yen worth of contingent liabilities from Sharp. For those unfamiliar, contingent liabilities are basically costs that a company could incur in the future from uncertainties, like lawsuits that have yet to be ruled on, accounting changes, supply contracts, and more.
In a statement released by Foxconn, “We already notified Sharp on the same day [before Sharp held its board meeting on Thursday] that our side had to clarify the contents. We have to postpone the signing before both sides can reach an agreement. We hope to clarify it quickly and to bring this deal to a successful conclusion.”