Japan’s prominent brand Sharp Corp, looks to seal a deal with Toshiba Corp’s personal computer business. The company is looking to stage a comeback from the personal computer industry after striking out eight years ago.
According to reports, Sharp is looking to offer a whopping 4 billion yen or roughly $48.1 million to acquire Toshiba’s computer business. The company shows great signs of recovery since being under Foxconn.
Foxconn is based in Taiwan and is known as one of the biggest contract makers of electronics globally. The Taiwan-based company took over Sharp last July of 2016. The company has been low key ever since the management takeover, but recent actions showed great prospect under Foxconn.
Sharp, Toshiba Deal
Furthermore, Sharp is one of the greatest Japanese brands on the market. They are well known in the international markets as a major supplier of high-end TVs and other displays. They are also a prominent player in the PC market but withdrew from the game in 2010.
The deal, according to reports, is expected to close on October 1 this year. Sharp is looking to acquire a total of 80.1% stakes in Toshiba’s PC unit according to a statement made last Tuesday. They also mentioned that the deal is regarded to have a little impact on their earnings.
Sharp will get its hand on Toshiba’s Dynabook brand in the process. This is the brand responsible for Toshiba’s laptops and tablets production and development. Toshiba also sees Dynabook as their backbone regarding their PC enterprise.
More Details on Sharp’s Plan
The company is looking to combine the brand with Foxconn’s massive contract manufacturing to scale up the business. The duo is looking to help Sharp produce PCs on the lower end of the market and turn them into an eventual profit.
On an interview, Toshiba announced that they started to outsource their PC production and PC builds on its own plant in China. This started last 2015, but the company declined to comment on their previous manufacturer.
On the other hand, Toshiba has been on a selling spree a huge number of their brand to compensate for their recent bankruptcy. The company is on an endeavor to recuperate some of the massive loss they suffered from their nuclear energy subsidiary.
Both companies saw a great market movement from the previous session. Sharp managed to hit a whopping 3% increase, while Toshiba saw a flat 1% jump on the same session.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings on the market. Register an account now and begin your investing journey!