Foxconn clears China's anti-monopoly review for $3.8 billion deal with Sharp

August 11, 2016 11:51 AM EDT

The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in New Taipei City, Taiwan March 29, 2016. REUTERS/Tyrone Siu/File Photo

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TOKYO (Reuters) - Taiwan's Foxconn said on Thursday China's anti-monopoly authorities approved its acquisition of Japan's Sharp Corp, paving the way for the world's largest contract electronics manufacturer to seal a $3.8 billion deal.

With all necessary regulatory reviews complete, Foxconn and Sharp "will now move to complete the transaction in accordance with our agreement as soon as possible," the Taiwanese company said in a statement.

Seeking control of Sharp's advanced panel technology and to strengthen its position with major client Apple Inc, Foxconn, formally known as Hon Hai Precision Industry Co, plans to spend 388.8 billion yen ($3.84 billion) to take a two-thirds stake in Sharp.

Foxconn was unable to complete the acquisition in June as planned due to the prolonged Chinese antitrust review, raising fears among investors that the deal might fail and sending Sharp shares briefly below the planned acquisition price of 88 yen.

($1 = 101.3300 yen)

(Reporting by Makiko Yamazaki, editing by David Evans)

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