The company that makes iPhones for Apple wants to buy Sharp for over $US5 billion

(Photo by Sean Gallup/Getty Images)

Foxconn, the Taiwan-based electronics company that makes iPhones for Apple, wants to buy Sharp.

The Wall Street Journal reported Foxconn would be willing to take on all of Sharp’s debt in a deal worth around $US5.3 billion.

Sharp’s share price is up around 20% on the Nikkei today.

The Japanese company, once one of the world’s leading electronics companies, has been repeatedly bailed out by banks over the past year. It is currently assessing a competing takeover bid from a Japanese state infrastructure fund.

Japanese government officials have expressed concern about foreign ownership of the iconic firm, the WSJ reported.

The company has seen a dramatic reversal of its fortunes over the past decade, however, with its share price down almost 95% from its pre-GFC high amid disruption in the global electronics industry. It has been seeking to aggressively reduce its stocks of LCD panels and is marketing itself as a screen supplier for the Chinese manufacturing market.

Foxconn is keen on acquiring Sharp’s manufacturing and display expertise, according to the WSJ. You can read the full report here.

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