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 acquired approval from the corporate’s board and wouldn’t want a stockholder vote, the chipmaker stated in an announcement. Veoneer and Magna stated in July that each corporations’ boards had accepted the acquisition.
Veoneer is a developer of superior driver help techniques, 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 automobiles,” it has turn out to be a well-liked — and attainable — set of options which can be showing in a larger share of recent autos on supply as we speak.
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 the moment 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 value of Veoneer rising practically $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 fashioned a three way partnership with Volvo Automobiles, dubbed Zenuity, that was targeted on superior driver help techniques. That enterprise was later break up final July.
The ADAS developer additionally has a pre-existing relationship with Qualcomm. The 2 corporations signed an settlement in January to collaborate on an ADAS platform.
