Just hours after ailing Japanese firm Sharp announced that it had agreed to be acquired by Taiwanese tech firm Foxconn, the Taiwanese firm called the whole deal into question Wednesday night, stating that it would be postponing a definitive agreement until further notice, according to Fortune.
Foxconn further stated that it would be reviewing "new material information" that was received from the Japanese company earlier during the day. Analysts believe that the information pertained to an additional $3.1 billion in contingent liabilities that was not previously disclosed by Sharp.
Thus, what seemed like a momentous tie-up between two companies, one a new, thriving firm and the other an ailing veteran in the tech arena, has been cast into doubt. Neither Foxconn nor Sharp has released a statement about the postponement, reported CNN Money.
Foxconn had been eyeing the Japanese firm for years, with Foxconn Chairman Terry Gou personally investing in the development and construction of a Sharp plant. The Taiwanese company also attempted to invest in Sharp in 2012, though the agreement ultimately fell apart.
Acquiring Sharp would give Foxconn a lot of benefits, among them being Sharp's lucrative contracts with Apple for iPhone screens. By acquiring the Japanese tech firm, Foxconn would be able to diversify its business model significantly, reported The Washington Post.
Apart from its contracts, Sharp also carries the prestige of a 100-year-old brand with a reputation for sheer excellence in products ranging from mechanical pencils to television sets.
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