Electric car manufacturer BYD Co Ltd announced that its subsidiary has reached an agreement with the Singaporean branch of American manufacturing company Jabil Inc to purchase its mobility business in China for 15.8 billion yuan (USD 2.17 billion). The transaction will help BYD Electronic (International) Co's (BE) expansion as it aims to take advantage of the potential growth in the industry by expanding its client base, product portfolio, and business of smartphone components.

 

The Chinese EV manufacturer will now purchase the unit that Jabil Circuit (Singapore), a manufacturer of printed circuit boards, created last month with product manufacturing operations in Chengdu and Wuxi.

 

"While improving BE's market share of products, the acquisition will effectively synergize with BE's existing products, enhance the overall competitiveness, ensure long-term sustainable development," BYD said in an exchange filing, without divulging any further details about the acquisition.

 

In a statement, Jabil said that if the transaction is successful, the definitive agreement will allow it to "enhance our shareholder-centric capital framework, including incremental share buybacks", Chief Executive Officer Kenny Wilson said.

 

The deal will allow Jabil to further invest in "electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets," Wilson added.