BYD buys Chinese assets of the American Jabil for $2.2 billion, whose components are used by Apple
A unit of the Chinese automaker BYD Co. will acquire the assets of the American company Jabil Inc. in China for 15.8 billion yuan ($2.2 billion), writes Bloomberg.
The agreement is signed by the electronics division of BYD Electronic International Co. As part of the arrangement, it will receive Jabil Inc.’s manufacturing business in the Chinese cities of Chengdu and Wuxi.
The US giant will thus reduce its presence in China as geopolitical tensions force suppliers to look for alternative locations to produce components used in everything from Apple’s iPhone and iPad to Dell computers. It also accelerates BYD’s expansion into the mobile electronics market.
Until now, Jabil has been one of the largest contract manufacturers in China, employing tens of thousands of workers to manufacture and assemble parts for Apple. In a separate statement, the company said the deal will allow it to strengthen its shareholder-oriented capital structure, including additional share buybacks.
As it is known, amid the ongoing trade war between the US and China, some Apple suppliers have reduced their presence in China. For example, Catcher Technology Co. sold two key facilities in China to a local company.