Qualcomm Tops Magna’s Bid With $4.6B Offer For Veoneer

Chipmaker Qualcomm announced on Thursday, August 5, it had offered to buy Swedish auto parts maker Veoneer for US$4.6 billion, an 18.4% premium to a bid in July by Canada’s Magna International that was accepted by Veoneer’s board.

US-listed shares of Veoneer, spun off in 2018 from airbag and seatbelt maker Autoliv, rose 28% as the stage was set for a bidding war.

Veoneer stated its board of directors would “evaluate the proposal from Qualcomm consistent with its legal duties and the terms of the Magna merger agreement.”

Demand has been on the rise for advanced driver assistance systems, known in the industry as ADAS, that add features ranging from collision warning to parking assist. Some systems collect data from cameras and radar to monitor surroundings, interpret the situation and take action.

Qualcomm, apart from powering mobile phones, has been a chip supplier to carmakers for a decade and last year started its own line of ADAS systems called Snapdragon Ride.

Earlier this year it signed a collaboration deal with Veoneer to develop a software and chip platform for driver-assistance systems called Arriver.

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