China-based Electric vehicle maker BYD Company announced on Monday that its controlled subsidiary BYD Electronic (International) Company Ltd and Jabil Inc (the seller), one of the world’s largest electronics manufacturing service and solution providers signed an acquisition framework agreement, intending to acquire the seller’s mobile electronics manufacturing business for approximately RMB 15.8 billion (equivalent to $2.2 billion) in cash, marking BYD Electronics’ expansion of the core supply chain for consumer electronics.

The target business of this acquisition is the seller’s product manufacturing business located in Chengdu and Wuxi, including the manufacturing of components for existing customers, BYD said in a statement.

BYD Electronics is a global leading platform-based high-end manufacturing enterprise, engages in a wide variety of businesses ranging from smart phones, tablet PCs, new energy vehicles, smart home, game hardware, unmanned aerial vehicles, Internet of Things, robots, communication equipment, health devices to other diversified market areas.

Wang Nianqiang, CEO of BYD Electronics, said “This acquisition will expand the business of smartphone components and mark the beginning of a new cycle of rapid growth. The acquisition will also ensure long-term sustainable development while creating value for customers and shareholders of the BYD Electronics.”

Kenny Wilson, CEO of Jabil, said “This transformational deal would represent the largest transaction in the history of our company, and I am thrilled to be able to work with a reputable company like BYD Electronics to drive this business successfully forward.”

US-headquartered Jabil is a global manufacturing company with more than 250,000 employees across 100 locations in 30 countries, serving 300 of the biggest brands in the world in every market from healthcare, packaging, smartphones and cloud equipment to automotive and home appliances, according to its website.

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