Chinese automaker, BYD, is set to acquire U.S.-based manufacturing solutions provider, Jabil Inc.’s mobile electronics manufacturing business in China, a deal worth an estimated $2.2 billion. The acquisition is being overseen by legal heavyweights Skadden, Arps, Slate, Meagher & Flom, and King & Wood Mallesons (KWM). The latter is acting as legal counsel to BYD, while the former is advising Jabil Inc.
Being directly involved in the transaction, Jabil Circuit, a Singapore-incorporated private company that produces printed circuit boards and is a subsidiary of NYSE-listed Jabil, has agreed to sell Juno Newco Target Holdco Singapore Pte. Ltd., which was founded in August this year. The acquirer is BYD’s Hong Kong-listed electronics division, BYD Electronics.
All details of this acquisition were made in accordance with a filing with the Hong Kong Stock Exchange.
For more in-depth analysis of this story, refer to a detailed article by Law.com (access to the full article might be restricted as it is behind a paywall).
In such high-stakes cross-border acquisitions, the role of experienced legal counsel is of utmost importance. With Skadden and KWM helming respective sides, the deal is in experienced hands. This acquisition adds to the growing trend of Chinese companies expanding their footprints overseas in a highly globalised business environment.