Shares in Sharp surged by a fifth as Taiwan’s Foxconn completed its $3.8 billion takeover of the cash-strapped Japanese display maker following approval by the Chinese antitrust authorities.

The green light from China was the final hurdle for Foxconn, formally known as Hon Hai Precision Industry, to clear in its acquisition of loss-making Sharp – a deal that had been scheduled to be completed by the end of June.

Shares in Sharp rose 19 per cent to ¥106 on Friday in Tokyo after Foxconn released a statement late on Thursday night.

“Our investment in Sharp has completed all necessary reviews by the relevant governments, and our company and Sharp will now move to complete the transaction in accordance with our agreement as soon as possible,” Foxconn said.

Foxconn agreed in March to pay ¥388.8bn (€3.39bn) for a two-thirds stake in Sharp, giving the Apple assembler a century-old electronics brand and the technology know-how that pioneered solar panels and liquid crystal displays.

However the long wait for Foxconn’s injection of cash had made investors uneasy, especially since the Taiwanese group had earlier walked away from a similar deal in 2012.

Sharp said the full payment was made on Friday and that the company would receive ¥300bn in new syndicated loans from two Japanese banks.

– Financial Times