Date: August 28, 2023. — Chinese automaker BYD has announced its acquisition of Jabil’s mobility business for US$ 2.2 billion.
BYD, known for its electric vehicles (EVs), will take over Jabil’s mobility division. This division includes a wide range of offerings, such as connected vehicle technologies, electric propulsion systems, and ADAS. With this acquisition, BYD is set to gain a significant technological advantage. Consequently, this will allow the company to expedite the development and deployment of its electric and autonomous vehicle ambitions.
The transaction will greatly assist BYD Electronic (International) Co’s (BE) expansion. Moreover, it aims to capitalize on the potential growth in the industry by expanding its client base, diversifying its product portfolio, and strengthening its business in smartphone components.
As of 0328 GMT, BYD’s shares listed in Hong Kong were trading 2.5% higher at HK$229.2, while those listed in Shanghai were up 3.1% at 239.8 yuan. Shares of Jabil on the NYSE closed the previous day slightly lower.
Jabil, a US-based manufacturing solutions provider, made the decision to divest its mobility business. This move is part of its ongoing efforts to streamline operations and focus on its core business areas. Additionally, the $2.2 billion price tag for the acquisition reflects the value. BYD sees in the technology and expertise housed within Jabil’s mobility division.
With this acquisition, BYD aims to strengthen its competitive edge not only in China but also on the global stage. The company has been a key player in China’s push towards electric mobility. They produce a diverse range of electric buses, passenger cars, and commercial vehicles. This move will likely enhance BYD’s ability to compete against other international EV giants. It will also assert its influence in the transformation of the automotive industry.
The agreement will enable Jabil to make additional investments in “electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets,” Wilson noted.
According to its website, Jabil Circuit collaborates with businesses in the healthcare, telecommunications, computer, and storage sectors. Their goal is to advance supply-chain intelligence.
Industry analysts speculate that this acquisition could accelerate the development of next-generation EV technologies. It could improve manufacturing efficiency. Additionally, it might bolster BYD’s ability to adapt to the evolving preferences of consumers in an increasingly eco-conscious and technology-driven market.
