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Reuters sources say Foxconn’s Sharp is in final talks to buy Toshiba’s PC business for around $45.7 M.

The two could finalize the deal as early as this week. 

Sharp withdrew from the PC business in 2010 and wants to reenter the market now that it can leverage the purchasing power of Foxconn.

Toshiba’s PC business reported a loss of 9.6B yen on sales of 167.3B yen in the last fiscal year. 

Toshiba previously sold off its TV business to Hisense and its white goods business to Midea Group to help cover liabilities from its bankrupt nuclear unit.

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Original Post

OSAKA -- Sharp plans to acquire Toshiba's money-losing personal computer business for an estimated 5 billion yen ($45.6 million), set to re-enter a market it withdrew from eight years ago.

The Osaka-based electronics maker hopes to build on the expertise of parent Hon Hai Precision Industry, the Taiwanese contract manufacturer also known as Foxconn.

Toshiba, for its part, will shed unprofitable operations as part of its restructuring efforts.

Under a contract the two companies are expected to sign this week, Sharp will purchase a roughly 80% stake in Toshiba Client Solutions, a wholly owned Toshiba subsidiary, as soon as this fall. Toshiba would keep a stake of about 20%.

Known for releasing the world's first mass-market laptop in 1985, Toshiba grabbed a world-leading market share for a time with its Dynabook line. But in recent years, competitors like China's Lenovo Group have taken the lead, while smartphones and tablets have eaten into the PC market overall, depressing sales.

Sales for Toshiba's PC business declined 13% on the year to 167.3 billion yen in fiscal 2017, with its operating loss growing to 9.6 billion yen from the previous year's 500 million yen. The conglomerate has been pushing ahead with restructuring, and recently sold its cash cow memory chip arm in order to help rebuild its finances.

Sharp pulled out of its PC business, which included the Mebius line, in 2010 as earnings deteriorated as competition intensified. But the company has changed course since moving under the umbrella of Foxconn in 2016. Foxconn has experience with efficiently producing PCs in large volumes for American companies such as Dell, as well as a network for procuring parts at low cost, factors Sharp believes could read the rest here

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