The $3.8 billion sale of Swedish automotive tech firm Veoneer to Magna Worldwide hit a roadblock Thursday after chipmaker Qualcomm submitted a bid for the corporate for $800 million extra.
Qualcomm’s $4.6 billion bid, which is available in at $37 per share, has already obtained approval from the corporate’s board and wouldn’t want a stockholder vote, the chipmaker stated in a press release. Veoneer and Magna stated in July that each firms’ boards had authorized the acquisition.
Veoneer is a developer of superior driver help methods, decision-making car {hardware} and software program that may carry out a restricted set of actions below sure circumstances, like altering lanes on a freeway or emergency braking. Whereas ADAS is a far cry from “self-driving vehicles,” it has turn into a preferred — and attainable — set of options which can be showing in a better share of recent autos on provide at present.
The burgeoning bidding struggle between Magna and Qualcomm is bullish on the way forward for ADAS expertise, as every firm seeks to remain aggressive with Tier-1 ADAS suppliers Continental and Bosch. Qualcomm’s market capitalization at present sits at $164.8 billion, whereas Magna’s is $25.3 billion. It’s unclear whether or not Magna will submit a counter-bid.
The market has responded to the brand new bid, with the inventory worth of Veoneer rising almost $7 per share, from $31.22 to $38.20 between Wednesday and Thursday. Previous to the announcement of the sale to Magna on July 23, Veoneer inventory sat at $19.93 per share.
Veoneer was spun off from automotive security system maker Autoliv in 2018. The corporate shaped a three way partnership with Volvo Vehicles, dubbed Zenuity, that was centered on superior driver help methods. That enterprise was later cut up final July.
The ADAS developer additionally has a pre-existing relationship with Qualcomm. The 2 firms signed an settlement in January to collaborate on an ADAS platform.
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