(Reuters) – Electric vehicle maker BYD said on Monday that its unit has entered into an agreement with the Singaporean unit of US-based manufacturing firm Jabil Inc to buy the product manufacturing business in China for 15.8 billion yuan ($2.17 billion).
The transaction will broaden BYD Electronic (International) (BE’s) customer base and product portfolio, expand its smartphone component business, and fuel its growth as it looks to capture potential growth in the segment.
Jabil Circuit (Singapore), which makes printed circuit boards, set up a unit this month with a product manufacturing business in Chengdu and Wuxi, which will now be sold to the Chinese electric vehicle maker.
“While improving BE’s market share of products, the acquisition will effectively synergize with BE’s existing products, enhance overall competitiveness, and ensure long-term sustainable development,” BYD said in an exchange filing, without disclosing any other details about the acquisition.
Gabil did not immediately respond to a Reuters request for details.
($1 = 7.2890 CNY)
(Reporting by Sameer Manikar in Bengaluru; Editing by Muralikumar Anantharaman and Rashmi Aish)