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What Happened: The Swedisth auto parts maker said Sunday its merger agreement with Magna remains in place, which allows the company to entertain high bidders. “Board of directors has determined that Qualcomm's proposal to acquire Veoneer would reasonably be expected to result in a 'Superior Proposal', as defined under the terms of Veoneer's merger agreement with Magna," Veoneer said in a statement.
Qualcomm is offering $37 a share, an 18% premium as compared to Magna’s bid of $31.25 per share. The boards of both Veoneer and Magna unanimously approved a potential $3.8 billion deal last month.
What’s Next: San Diego-based Qualcomm would gain a strong foothold in the driver-assistance technology market with a successful takeover of Veoneer. Qualcomm is a leading supplier of mobile processors, and is working to establish a bigger presence in the automobile chip market. Veoneer makes software and sensors that automakers use to make advanced driver assistance systems for smart cars.
Veoneer last year entered a technology partnership with Qualcomm to work on an advanced driver assistance systems, with a goal of creating a fully autonomous driving systems that combines Veoneer software with Qualcomm hardware.
Magna has not issued a comment on the new Qualcomm bid.
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