June 5, 2018
The Osaka-based OEM is hoping to take advantage of Toshiba’s well-documented restructuring conundrum.
The company announced that it plans to acquire Toshiba’s personal computer business for around ¥4 billion, according to Nikkei Asian Review, which claims that Sharp is hoping “to build on the expertise of parent Hon Hai Precision Industry, the Taiwanese contract manufacturer also known as Foxconn.”
Toshiba’s PC arm is currently running at a loss, with the last FY financial results showing a 13 percent decline in sales, with operating profits falling from ¥-500 million to ¥-9.6 billion. The OEM is currently engaged in restructuring efforts as it attempts to “shed unprofitable operations”, such as the much-publicised sale of its memory chip business to Bain Capital earlier this month.
Sharp originally exited the PC market in 2010, due to a combination of intensified competition and deteriorating earnings. But its acquisition by Foxconn in 2016 has seen it change its course, and it is now set to re-enter the market after an absence of eight years.
Under the terms of the expected deal, Sharp will acquire approximately 80 percent of Toshiba Client Solutions, Toshiba’s wholly-owned subsidiary, by the first of October. Toshiba will retain ownership of the remaining 20 percent.
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