Chinese electric vehicle (EV) manufacturer Build Your Dreams (BYD) Co. Ltd announced on Monday its acquisition of Jabil Inc’s Singaporean division’s mobility business in China for $2.17 billion, as reported by Reuters. The deal is expected to bolster BYD’s strategic expansion plans and capitalizes on the company’s ambitious drive to emerge as the world’s leading EV maker.
The acquisition, carried out by BYD’s subsidiary BYD Electronic (International) Co, is anticipated to stimulate the expansion of BYD’s customer base and product portfolio. The transaction also aligns with BYD’s ongoing efforts to diversify its business, incorporating smartphone components manufacturing.
A key statement issued by BYD illustrates the importance of this strategic move: “While improving BE’s market share of products, the acquisition will effectively synergize with BE’s existing products, enhance the overall competitiveness, ensure long-term sustainable development.” This comment highlights the company’s strategic focus on reinforcing its market presence and leveraging the strengths of the combined entities.
Jabil Inc’s CEO, Kenny Wilson, also weighed in on the transaction’s implications. In a statement, he expressed that the agreement would enable Jabil to enhance its “shareholder-centric capital framework, including incremental share buybacks.”
Wilson further emphasized the company’s intentions to channel the transaction’s proceeds into strategic investments across diverse sectors including electric vehicles, renewable energy, healthcare, AI cloud data centers, and more.
This acquisition aligns with BYD’s recent aspirations to outpace its EV market rival, Tesla. According to an earlier report, BYD’s Chairman Wang Chuanfu revealed the company’s goal of achieving 3.6 million units in overall sales volume this year, including exports. This ambitious target demonstrates BYD’s commitment to capitalizing on the rapidly expanding demand for EVs worldwide.