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Tagged: jabil circuit

BYD unit buys US firm Jabil’s mobile parts business in China for $2.2 billion

By Sameer Manekar and Yelin Mo

(Reuters) -Chinese automaker BYD said on Monday its electronics unit has struck a deal with U.S.-based manufacturer Jabil Inc to buy its mobile electronics manufacturing business in China for 15.8 billion yuan ($2.2 billion).

The deal will expand BYD Electronic’s (BE) customer base, product portfolio and its smartphone components business as it looks to capture Jabil’s potential growth in the sector.

Singapore-based Jabil Circuit, which manufactures printed circuit boards, established a unit this month that absorbed its product-manufacturing businesses in Chengdu and Wuxi, which will now be sold to the Chinese group.

Shares of Jabil rose 6% to $109.50 in early trading.

BYD Electronic’s shares initially fell as much as 9% in Hong Kong, but reversed their losses and closed flat, while the broader market ended 1% higher. The Hong Kong-listed stock of its parent, BYD , closed 0.7% up.

Although now best known for its electric vehicle business, BYD started out by selling electronic components. In 2007, it listed its BE unit on the Hong Kong Stock Exchange.

BE’s major business has been selling electronic components for consumer electronics products such as smartphones and laptops. This was one of three key business segments for BYD Electronic, accounting for more than 70% of its total revenue in 2022.

“For BYD, I think it’s a reminder that they do more than just dominate in EVs,” said Tu Le, founder of consultancy Sino Auto Insights, adding that they were higher up in the mobile supply chain and were a supplier to Apple Inc.

Citi analysts said in a note that they believed the deal involved Jabil’s Green Point metal casing operations in Wuxi, and that it could see BE further penetrating into Apple’s casing supply with higher market share.

BE will likely have to fund

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