Japan's Sharp Corp has accepted a takeover offer by Taiwan's Foxconn for $6.24 billion, choosing the iPhone assembler over a Japanese government backed entity.

Sharp's board had held a two-day meeting to decide if the offer from the world's largest contract electronics manufacturer had to be accepted.

The deal will face intense regulatory scrutiny as it will be the largest takeover of a Japanese technology firm by a foreign company.

Foxconn, which is officially the Hon Hai Precision Industry Co, has been an underdog in the pursuit of Sharp but if the acquisition comes through it will be a big victory for the Taiwanese firm, which has been courting Sharp for a long time.

Sharp had become a target for rivals after its hefty investments in advanced LCD plants ran it into financial difficulties in the face of intense price competition from Asian rivals.

Foxconn thinks Sharp acquisition will help it compete with Asian rivals such as Samsung Electronics Co.

Spokesmen for Sharp and Foxconn declined to comment, Reuters reported.