Taiwan's Foxconn offers to buy Japan's Sharp for $5.3bn

Sharp logo Image copyright AFP
Image caption Sharp has had to be bailed out twice by lenders in the last three years

Taiwan's Foxconn Technology Group, which assembles most of the world's iPhones, has offered about 625bn yen ($5.3bn) to take over struggling Japanese electronics firm Sharp.

Sharp is also said to be reviewing a rival offer from the Innovation Network Corp of Japan, a government-backed investment fund.

A decision by Sharp is reportedly expected by the end of the month.

Shares of Sharp surged by as much as 25% in Tokyo trading.

Sharp is a major producer of display screens for smartphones, tablets and televisions, but has become saddled with heavy debts.

The consumer electronics maker has been bailed out twice in the last three years by its banks.

In 2015, Sharp announced major losses for the fiscal year ending in March and cut more jobs.

Foxconn, the world's largest electronics contract manufacturer, first offered to invest in the troubled Japanese firm in 2012, but talks collapsed.

In the past, Japanese officials have expressed reservations about allowing Sharp to be bought by a foreign competitor because of its proprietary technology.

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