BYD Co Ltd, an electric vehicle maker, announced on Monday that its unit has reached an agreement with Jabil Inc’s Singaporean division to acquire its mobility business in China for 15.8 billion yuan ($2.17 billion). This deal will expand BYD Electronic (International) Co’s customer base, product portfolio, and smartphone components business, and contribute to its growth in the sector.
The acquisition has had a positive impact on BYD’s shares, with its Hong Kong-listed shares trading 2.5% higher and its Shanghai-listed shares up 3.1%. On the other hand, Jabil’s shares on the NYSE ended slightly lower.
Jabil Circuit (Singapore), a manufacturer of printed circuit boards, recently established a unit in Chengdu and Wuxi for product manufacturing. This unit will now be sold to BYD, the Chinese EV maker.
BYD stated in an exchange filing that the acquisition will improve BE’s market share and enhance its overall competitiveness, ensuring long-term sustainable development. However, no further details about the acquisition were disclosed.
In a statement, Jabil expressed that if the deal is completed, it would enable the company to enhance its shareholder-centric capital framework, including incremental share buybacks. CEO Kenny Wilson also mentioned that the deal will allow Jabil to further invest in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets.
The deal is valued at 15.8 billion yuan, which is equivalent to $2.17 billion based on the current exchange rate.
Reporting by Sameer Manekar in Bengaluru; Editing by Muralikumar Anantharaman, Rashmi Aich, and Sherry Jacob-Phillips.
