BYD Electronic Plans to Buy Jabil Unit for Nearly $2.2 Billion -- Update

By P.R. Venkat

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 "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 is engaged in design engineering, manufacturing, and supply chain services for the electronics manufacturing services and consumer industries.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

August 27, 2023 21:12 ET (01:12 GMT)

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