Business

The Chinese carmaker BYD is buying the mobility business of the US company Jabil for 2.2 billion US dollars

FILE PHOTO – Security guards stand by the BYD booth at the Auto Shanghai show in Shanghai, China, April 19, 2023. REUTERS/Aly Song/File Photo Acquire License Rights

Aug 28 (Reuters) – Electric vehicle maker BYD Co Ltd 002594.SZ announced on Monday that its unit has struck a deal with US-based manufacturing company Jabil Inc.’s Singapore division JBL.N to expand its mobility business in China for 15.8 billion yuan ($2.17 billion) to buy ).

The deal will expand BYD Electronic (International) Co (BE)’s customer base, product portfolio and smartphone components business and spur growth as the company seeks to capitalize on potential growth in the industry.

Hong Kong-listed BYD shares 1211.HK were trading up 2.5% at HK$229.2 by 0328 GMT, while those in Shanghai were up 3.1% at 239.8 yuan. Jabil’s shares on the NYSE closed marginally lower overnight.

Jabil Circuit (Singapore), a printed circuit board maker, this month established a unit with product manufacturing shops in Chengdu and Wuxi, which will now be sold to the Chinese electric vehicle maker.

“While improving BE’s product market shares, the acquisition will generate effective synergies with BE’s existing products, improve overall competitiveness and ensure long-term sustainable development,” BYD said in a stock release, without giving further details about the acquisition .

Jabil said in a statement that the definitive agreement would allow it to “enhance our shareholder-centric capital framework, including phased share repurchases” if the transaction closes, Chief Executive Officer Kenny Wilson said.

The deal will allow Jabil to continue investing in “electric vehicles, renewable energy, healthcare, AI cloud data centers and other end markets,” Wilson added.

($1 = 7.2890 Chinese Yuan)

Reporting by Sameer Manekar in Bengaluru; Edited by Muralikumar Anantharaman, Rashmi Aich and Sherry Jacob-Phillips

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