Sharp's choice of Hon Hai ends months of speculation and offers clear benefits in terms of a cash injection. But question marks hang over what will happen to Sharp's workforce and management as the Taiwanese giant sets about turning around the firm.
The cash infusion will be massive, and analysts agree on the benefits of that. They also point to synergies Sharp will have with the Hon Hai group.
"As for the capital offer, Hon Hai's plan has an edge over INCJ's, so I think it's a plus for Sharp," said Toshiro Sato, an analyst at Kyokuto Research Institute. Hon Hai's ¥660 billion bid far overshadowed INCJ's ¥300 billion offer.
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