SHENZHEN – Chinese automaker BYD's electronics unit has agreed to purchase Jabil's mobile electronics manufacturing business in China for 15.8 billion yuan ($2.2 billion).

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

"The acquisition will also ensure long-term sustainable development while creating value for customers and shareholders," said Wang Nianqiang, CEO, BYD Electronic.

Jabil established a unit earlier this month that absorbed its product-manufacturing businesses in Chengdu and Wuxi, China, which will now be sold to the Chinese group.

"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 BYDE to drive this business successfully forward," said Jabil CEO Kenny Wilson. "If completed, the proceeds from this transaction will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks. Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets."

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