hon hai buying 10 percent stake in sharp for $806m - outdoor lcd displays

TAIPEI, Taiwan—
Taiwan electronics manufacturer Hon Hai Precision Industry Co. , Ltd.
Japan's struggling Sharp Company holds 10% of its shares.
Analysts said the company spent about $0. 806 billion to try to fight the growing competition of Samsung Electronics Co.
Hon Hai, the owner of Foxconn's China factory, is a major producer of Apple's ipad and iphone.
The most valuable company in the world
Sharp and Hon Hai will form an alliance in the field of liquid crystal display and other electronic products to reduce costs.
Sharp Ping
Screen TVs and LCD monitors for televisions, game consoles, tablets and smartphones, appliances and other products.
Xie Guowei, an analyst at Display Search, a market research firm, said Hon Hai is seeking to acquire cutting-
Sharp's cutting-edge technology will produce panels at large factories in China and integrate supply lines for iPhone and iPad.
"In the face of fierce competition from Samsung, Hon Hai and Sharp's alliance seem inevitable," Xie Changting said . ".
"Taiwanese panel manufacturers bought their technology from Japan for the first time 10 years ago. This tie-
Launch the second Taiwan-
Japan Cooperation in electronic products.
Hon Hai said in a statement that the alliance will provide new growth opportunities for the two companies.
Hon Hai will buy 66. 9 billion yen ($806 million)
The value of Sharp's new offering.
Like other Japanese electronics manufacturers, Sharp is also affected by falling prices, competition from other Asian companies and a stronger yen.
The tsunami disaster of 2011 and floods in Thailand have also disrupted supply chains.
Sharp said in February that it expects to lose 290 billion yen in the fiscal year ended.
Hon Hai will also acquire 50% of the LCD produced by Sharp's Sakai factory in Japan.
Sharp will sell 46 as part of the deal.
Hon Hai chief Gou Taiming and other investors hold a 5% stake in the plant.
Japanese rival Sony Corp.
7% of its shares will be retained.
Sharp's share of the plant will fall to 46.
5% from 93%.
Hon Hai is the world's largest manufacturer of electronic contracts.
The company revealed on Tuesday that its total revenue last year was $116 billion, up 15% from 2010.