Hon Hai Precision Industry Co.'s rescue of Sharp Corp. promises to bolster the Taiwanese electronics maker's ambitions for a bigger role in clean energy in some of the world's most polluting countries while also providing a firmer footing in Japan.
Hon Hai, also known as Foxconn, which reached a deal last week to take control of Sharp, has previously announced plans to improve energy efficiency at its factories and introduce more solar power in China and India. By buying Osaka-based Sharp, Hon Hai gains a company regarded as a pioneer in the development of solar panels.
"A merger with Sharp would give Foxconn access to a well-known brand name under which to sell its solar panels, and also strong distribution networks in Japan for wider solar-as-a-service offerings with smart home and battery technologies," Jenny Chase, head solar analyst for Bloomberg New Energy Finance, said.