TOKYO (Reuters) - Japan’s Sharp Corp (6753.T) said it will buy Toshiba Corp’s (6502.T) personal computer business and issue $1.8 billion in new shares to buy back preferred stock from banks, highlighting a swift recovery under the control of Foxconn.
The acquisition of the PC business for $36 million marks a return by Sharp to a market it quit eight years ago, even if its comparatively low cost underscores dwindling demand in a world where many consumers spend more money on their smartphones.
The Osaka-based electronics maker will be able to use the scale of parent Foxconn, the world’s biggest contract manufacturer, to produce PCs more cheaply - just as it has done with TVs.
“Foxconn is a PC contract manufacturer and has a great deal of expertise and production capacity,” said Hiromi Yamaguchi, senior analyst at Euromonitor International.
“This acquisition will prove a further catalyst for more Sharp and Foxconn synergies.”
Sharp said it will take an 80.1 percent stake in Toshiba’s PC unit on Oct. 1, and will retain its Dynabook brand.
Toshiba, which launched the world’s first laptop PC in 1985, sold 17.7 million PCs at its peak seven years ago. That has shrunk to just 1.4 million units last year.
Bought by Foxconn, known formally as Hon Hai Precision Industry Co Ltd (2317.TW), two years ago, Sharp recently posted its first annual net profit in four years, helped
