Magna International Inc., whose previous offer to buy Veoneer was accepted by the Swedish company, on Monday confirmed the news. It said Veoneer’s board determined that the previously announced proposal by Qualcomm to acquire Veoneer for $37 per share is a superior proposal under the terms of the previously announced merger agreement between Magna and Veoneer.
As a result, Magna has waived the four-day matching period to make a counterproposal. Accordingly, Veoneer has terminated its merger agreement with Magna and entered into the merger agreement with Qualcomm.
Veoneer will now pay Magna a termination fee of U.S. $110 million.
“Magna’s waiver decision underscores our disciplined approach to valuation as we pursue strategic acquisitions and continue to act in the best interests of our shareholders,” Magna CEO Swamy Kotagiri said in a statement. “We remain confident in our long-term value creation potential and our path forward as one of the world’s largest automotive suppliers and key enabler to meet future mobility needs.”
Magna International ranks No. 4 on Automotive News‘ list of the top 100 global suppliers worldwide, with sales of $32.6 billion to automakers in its 2020 fiscal year.
Reuters, Bloomberg and Automotive News Canada reporter Greg Layson contributed to this story.
