Jabil Circuit India Pvt. Ltd., the local unit of New York-listed Jabil Circuits Inc, has proposed to acquire a part of the electronic manufacturing services business of Ericsson India Pvt. Ltd.
Jabil India provides third-party services to various original equipment manufacturers. The company had earmarked an investment of USD 20 million in India. The company has now approached the Competition Commission of India to acquire a part of Ericsson's EMS business. The regulator has not yet approved the proposal, according to a circular. The deal size could not be ascertained.
According to the CCI, the transaction would have negligible overlap and no impact on competition as the business that is being acquired is an internal unit with no external customers. The proposed transaction relates to Jabil India's acquisition of Ericsson's India's business involving PCBA assembly and test and repair activities for its radio base station modules, transmission, and access products, made at a plant in Jaipur. The deal, however, does not include system integration and test of core and node products. Ericsson India's revenue for 2016 fell 20 percent to about USD 1.2 billion, dragged down by a decline in mobile broadband sales due to delayed spectrum auctions.