The parent of iPhone assembly firm Foxconn has taken over embattled Japanese electronics company Sharp in a deal worth $4.34bn (£3.1bn).
Hon Hai Precision's offer for the company was accepted by the Sharp board following two days of deliberations.
The move that was something of a surprise because of rumoured Japanese government unease about Sharp's technologies being owned by a Taiwanese company.
A rival rescue bid from a Japanese investment fund had also been put forward but that was reported to have included the break-up of the loss-making company and Sharp had previously made it clear it favoured the Hon Hai offer.
However, its share price collapsed by 15% on confirmation of the buyout, which gives Hon Hai a stake of almost 66%.
Analysts suggested investors were expecting a greater cash sum to be paid following local media reports of a deal worth $6bn (£4.3bn).
Sharp has a rich history but has teetered on the brink of bankruptcy for years amid tough competition in its core markets and its turnaround efforts have been hampered by shrinking prices.
The firm, which supplies smartphone and tablet screens to Apple and employs 50,000 staff, started life making belt buckles and pencils.
It was once among Japan's leading firms - its name gracing the shirts of Manchester United as a core sponsor.
But, like many of its Japanese rivals, it was slow to adapt to competition in its core markets from the likes of Samsung initially and then Chinese manufacturers.
LCD panel sales - which account for about one third of its business - have tailed off and Sharp posted a $900m (£647m) loss for the first nine months of its financial year earlier this month.
Its TV and tablet businesses have also struggled from cheaper competition.
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