BYD Co., Ltd. (SZ:002594) announced on Monday that its subsidiary has reached an agreement with the Singapore division of Jabil Inc (Jabil Inc) to acquire its product manufacturing operations in Chengdu and Wuxi, China, for 15.8 billion yuan (approximately $2.17 billion).
This transaction will further consolidate the customer base of BYD Electronic (International) Co., Ltd. (BE), expand its product portfolio and smartphone components business, injecting new impetus into its potential growth in the industry.
As a printed circuit board manufacturer, Jabil Group (NYSE:JBL) (Singapore) initiated product manufacturing operations in Chengdu and Wuxi in August this year, which are about to be acquired by the Chinese electric vehicle manufacturer.
BYD pointed out in the transaction documents that this acquisition will not only increase the market share of BE products but also achieve effective synergy with its existing products, enhancing overall competitiveness and ensuring long-term sustainable development. However, further details of the acquisition have not been disclosed.
In a statement, Jabil Group indicated that if the transaction is completed, this definitive agreement will enable the company to strengthen its shareholder-centric capital structure, including incremental share repurchases.
Jabil's CEO, Kenny Wilson, stated that the transaction will provide Jabil with further opportunities to invest in electric vehicles, renewable energy, healthcare, artificial intelligence cloud data centers, and other end markets.
