Foxconn's $4.4bn Sharp Takeover Delayed by 'New Material Information'

Updated | Taiwanese firm Foxconn's takeover of Japanese electronics giant Sharp has been put in doubt despite an announcement that the $4.4 billion deal had been agreed.

Foxconn manufactures Apple's iPhones as well as other smartphones and electronics, and its takeover of Sharp would have been the biggest ever acquisition of a Japanese firm by a foreign company.

Sharp announced on Thursday that it agreed to a deal with Foxconn, however the Taiwanese firm said "new material information" needed to be assessed.

"We will have to postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation," Foxconn said in a statement.

Sharp's shares initially rose following the announcement of the takeover, but have since fallen, closing down 14.4%. The company did not have a comment about the delayed deal immediately available.

Sharp spokeswoma Ingrid Helderman tells Newsweek: "What I would like to say about the deal is that [Foxconn subsidiary] Hon Hai's contribution will strengthen the competitiveness of Sharp's display device business, and will enable us to provide sufficient funding and capital that can cover the necessary investments for our growth, so that Sharp's business activities can develop integrally, and will also significantly contribute to the improvement of Sharp's financial standings, including increasing its working capital."

Sharp's board unanimously voted in favor of the acquisition, according to the firm's CEO Kozo Takahashi, but Japanese officials had reportedly been reluctant to let Sharp fall under foreign ownership.

"We already notified Sharp on the same day [as Sharp announcing the takeover] that our side had to clarify the contents," Foxconn said.

"We hope to clarify it quickly and to bring this deal to a successful conclusion."

This article has been updated with a comment from Sharp.