BYD Buys Jabil’s Mobility Business For $2.2 Billion

0
The BYD Board believes that the Acquisition will broaden the Group’s customer base and diversify its product portfolio
  • Jabil’s manufacturing businesses located in China (Chengdu and Wuxi) are a part of the deal.
  • It also includes component manufacturing for the company’s existing customers.

Jabil and BYD Electronic International Company (BYD) have entered into an agreement where the latter has agreed to buy the former’s Mobility business in a potential transaction expected to be valued at approximately $2.2 billion.

“This transformational deal would represent the largest transaction in the history of our company, and I am thrilled to be able to work with a reputable company like BYDE to drive this business successfully forward,” said Kenny Wilson, CEO, Jabil.

The BYD Board believes that the Acquisition will broaden the Group’s customer base and diversify its product portfolio, expand the business of smartphone components, significantly improve the Group’s customer and product structure, further capitalize on market development opportunities, enhance the strategic layout of core component products, propel the industrial upgrading of the Group, and mark the beginning of a new cycle of rapid growth.

Also Read: Sterling GTake To Make More EV Components In India

Jabil’s manufacturing businesses located in China (Chengdu and Wuxi) are a part of the deal. It also includes components manufacturing for the company’s existing customers.

“If completed, the proceeds from this transaction will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks. Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centres, and other end-markets,” Wilson added.

As part of the agreement, the parties have agreed to endeavour to enter into a definitive agreement. The divestiture will not be completed until the parties have completed due diligence and executed a definitive agreement and closed the transaction, which will be subject to the satisfaction of required regulatory approvals and other customary closing conditions.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!