logo
  

Qualcomm Proposes To Acquire Veoneer; Offer Represents 18% Premium To Magna Offer

Qualcomm Incorporated (QCOM) has submitted an offer to acquire automotive technology company Veoneer for $37 per share, representing a total equity value of $4.6 billion. Veoneer produces sensors, control units, software and systems for restraint control systems, advanced driving assistance systems, and Collaborative and Automated Driving. It was spun-off from Autoliv in 2018.

Last month, Magna International Inc. (MG.TO,MGA) and Veoneer (VNE) entered into a merger agreement under which Magna will acquire Veoneer. Pursuant to the deal, Magna will acquire all of the issued and outstanding shares of Veoneer for $31.25 per share in cash, representing an equity value of $3.8 billion, and an enterprise value of $3.3 billion.

Qualcomm noted that the transaction provides an 18.4% premium to the $31.25 per share for Veoneer offered by Magna. Qualcomm said it is prepared to immediately commence a focused diligence process. The company believes its offer delivers superior value and deal certainty to Veoneer stockholders.

Cristiano Amon, CEO of Qualcomm, said: "Our interest in Veoneer is driven by Arriver, and while we plan to explore a divestment of the non-Arriver assets to parties who are better positioned to grow these strong and stable businesses, neither the separation nor sale of the non-Arriver assets is a condition of our proposal."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Walt Disney's streaming service Disney+ is rolling out its much-anticipated new ad-supported subscription plan for Disney+ in the U.S. as part of its bid to stem the loss and make its streaming business profitable after the services posted a hefty operating loss of more than $1 billion in the third quarter. It is also raising pricing for its bundled subscription plans with Hulu, ESPN+ and live TV. The U.S. Food and Drug Administration announced the intended availability of base powder to make around 6 million bottles of specialty formula from Mexico as part of its efforts to meet the nationwide supply shortage caused by Abbott Nutrition recall. Reckitt Nutrition/Mead Johnson Nutrition will send an initial shipment of 331 thousand pounds of base powder for PurAmino Hypoallergenic Formula. Shares of Deutsche Telekom AG were gaining more than 1 percent in the morning trading in Germany after the telecom major on Thursday raised its fiscal 2022 earnings outlook again, despite reporting lower profit in its second quarter. Adjusted EBITDA AL, a key earnings metric, increased, while adjusted EBITDA AL margin dropped.
Follow RTT