New Sharp-Samsung Deal in Works

Sharp Corp. is considering producing photocopiers for Samsung Electronics Co. as part of a strengthening of cooperation between the two companies that could also lead to a further investment in Sharp by the South Korean electronics giant, the Asahi Shimbun reported in its Tuesday morning edition.

Sharp would make the copiers for Samsung in an original equipment manufacturer arrangement that would combine the benefits of a relatively profitable product for Sharp and Samsung’s stronger sales network in emerging economies, the report said.

Samsung purchased a 3% stake in struggling Japanese electronics manufacturer in March, enabling the South Korean company to outsource production of liquid-crystal displays for television sets.

During negotiations for the Y10.4 billion investment in March, Sharp was sounded out about selling its copier ops, but declined the proposal.