BYD Electronic plans to buy NYSE-listed Jabil Inc.’s mobile-electronics manufacturing business for nearly $ 2.2 billion to expand its smartphone components footprint.
The acquisition will mark BYD Electronic’s 285, -0.15% “expansion of the core supply chain for consumer electronics, and thus further increasing its market share and consolidating its leading position in the industry,” the companies said in a joint statement Monday.
After the deal is completed, the target company will become a wholly-owned subsidiary of BYD Electronic, and its financial results will be consolidated into the group’s financial statements.
Product-manufacturing businesses located in Chengdu and Wuxi, including components manufacturing for existing customers, will be part of the deal.
“The acquisition will also ensure long-term sustainable development while creating value for customers and shareholders,” said Wang Nianqiang, chief executive of BYD Electronic.
BYD Electronic is a platform-based high-end manufacturing enterprise with businesses ranging from smartphones, tablet PCs, new-energy and unmanned aerial vehicles.
Jabil JBL, -0.38% is engaged in design engineering, manufacturing, and supply chain services for the electronics manufacturing services and consumer industries.