Sharp to buy Toshiba’s PC business, issuing $1.8bn in new shares
Tokyo — Japan’s Sharp said on Tuesday that it would buy Toshiba’s PC business and issue $1.8bn 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 $36m 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% stake in Toshiba’s PC unit on October 1, and will retain its Dynabook brand...
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