Feb 25, 2017
SoftBank, Multinational Telecommunication Company of Japan and Hon Hai Precision Industry Co.Ltd trading as Foxconn Technology Group is planning to operate a joint venture deepening ties between two of Asia’s biggest technology companies which will take effect from March 1.
Foxconn’s subsidiary will buy shares from the SoftBank Groups Capital Apec Ltd and take 54.5% of stake worth $600 Mn leaving SoftBank with the remaining 45.5% which will embody both of the companies into a joint venture. Starting a new venture merging together, these two companies are eyeing on widening their business in the US.
Foxconn said “The joint venture will invest in initiatives that will integrate Softbank’s investment expertise and Foxconn’s advanced manufacturing & technology services” in addition to its managerial obligation in operation.
They have entered into a venture earlier also when Foxconn made a human-like a robot, Pepper.
SoftBank has an alliance with many companies in the US, 82% stake owned by Sprint Corporation. Foxconn is a leading supplier of human resources for Apple and a contract manufacturer for assembling iPhones for Apple (AAPL, Tech30).
The idea of investing together by joining a venture came into the process when the founder of Softbank Group, Masayoshi Son attended a meeting with Trump just after Trump’s election. The meeting also ended up with talks regarding the investment and the consequent result of generating employment up to 50,000 jobs.