Hon Hai Precision Industry Co. Ltd. announced that it will not pursue its investment in Japan's Sharp Corp. by a deadline set on March 26 after both companies failed to make revision of an earlier agreement, the Asahi newspaper said.

According to the newspaper, which did not indicate its sources, Hon Hai Chairman Terry Gou had informed Sharp's bankers that they will not invest in the Japanese firm but emphasized they are likely to pursue the deal once Sharp is able to make a new business plan in the future.

Hon Hai has been planning to buy out as much as 9.9 percent stake in Sharp but decided to cease from doing so after the Japanese display maker demanded a degree of management control.

Following a plummet in Sharp's stock due to losses that forced it to be bailout from its banks in 2012, Hon Hai was looking forward to lower the price tag of $708 million.