BYD Co Ltd, a leading electric vehicle maker, announced on Monday that its unit has reached an agreement to purchase the mobility business of Jabil Inc’s Singaporean division for 15.8 billion yuan ($2.17 billion). This deal will allow BYD to expand its customer base and product portfolio, as well as strengthen its presence in the growing electric vehicle sector in China.
The acquisition will be carried out by BYD Electronic (International) Co (BE), a subsidiary of BYD. It is expected to boost BE’s growth and enhance its overall competitiveness in the market. BYD’s shares in Hong Kong rose 2.5% to HK$229.2, while in Shanghai, they were up 3.1% at 239.8 yuan.
Jabil Circuit (Singapore), known for manufacturing printed circuit boards, recently established a unit in China’s Chengdu and Wuxi, which will now be sold to BYD. The acquisition will help BE improve its market share and align with its existing products for long-term sustainable development.
In response to the deal, Jabil released a statement indicating that if the acquisition is completed, it will enhance the company’s shareholder-centric capital framework, including incremental share buybacks. Jabil’s CEO, Kenny Wilson, expressed his excitement about the potential agreement and stated that it will allow Jabil to further invest in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets.
The acquisition is seen as a strategic move for both companies, as it enables BYD to expand its operations and product offerings, while providing Jabil with the opportunity to strengthen its focus on emerging technologies. The deal is expected to be mutually beneficial and support the growth plans of both companies.
The transaction highlights the increasing interest in the electric vehicle market and the potential for further growth in this sector. As environmental concerns and government regulations continue to drive the shift towards clean energy solutions, companies like BYD and Jabil are positioning themselves to capitalize on the expanding market opportunities.
With the completion of the deal, BYD will be well-positioned to strengthen its position as a leading player in the electric vehicle industry in China, while Jabil will have the resources to further invest in various emerging technologies.
Reporting by Sameer Manekar in Bengaluru; Editing by Muralikumar Anantharaman, Rashmi Aich, and Sherry Jacob-Phillips
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