Sharp shares grow as Samsung deal announced

<p>Sharp stocks were up after Samsung announced it is buying shares in its rival.</p>

The share price of Sharp shot up as a result of the news Samsung has agreed a deal to buy three per cent of its rival firm.

Stocks in Sharp rocketed by 17 per cent and eventually closed the day 14 per cent higher. Samsung also experienced a boost in the wake of the news, with its share price up by 0.65 per cent after the news broke.

Hiroshi Sakai, chief economist with SMBC Friend Research Centre, explained it is a "symbolic" move for Japan, as Sharp was previously seen as being the larger and more successful of the two companies.

"Sharp, which used to be a frontrunner in the panel industry, is struggling while its rival Samsung has raced past it," he said.

Mr Sakai predicted deals between Japanese and foreign rivals are likely to increase in the coming months and years.

Gerhard Fasol of Eurotechnology Japan in Tokyo told BBC News earlier in the week that it is going to be a good move for both Sharp and Samsung.

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