Shares of automotive safety technology provider Veoneer, Inc. (VNE) jumped 2.3% on Monday to close at $35.60 after the company reaffirmed that it has received a non-binding offer from Qualcomm Incorporated (QCOM) to acquire all the outstanding shares of Veoneer for $37 per share.

Notably, on July 22, Veoneer agreed to an offer by Magna International, Inc. (MGA) for $ 31.25 per share in an all-cash deal worth $3.8 billion.  The deal was expected to conclude by the end of this year. (See Veoneer stock charts on TipRanks)

Markedly, Veoneer is expected to boost Magna’s advanced driver assistance systems (ADAS) customer base and expand its reach to new markets, including Asia.

Further, the acquisition of Veoneer is expected to generate around $100 million in annual run-rate synergies by 2024 for Magna, as well as strengthen its balance sheet.

However, on August 5, Qualcomm made a public announcement of its all-cash acquisition offer for $37 per Veoneer share worth $4.6 billion, exceeding Magna’s bid by 18.4%.

Yesterday, Veoneer said that the merger agreement with Magna remains in effect, and its Board has not made any changes or withdrawn its recommendations.

However, Veoneer added it will consider all the terms of Qualcomm’s offer after discussions with its financial and legal advisors.

If required, the company may enter into negotiations with Qualcomm and Magna to determine the best interests of its stockholders.

The company stated, “There can be no assurances that Veoneer's discussions with Qualcomm will result in a transaction that the Veoneer board of directors determines is superior to Veoneer's pending transaction with Magna.”

VNE scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.

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The post Veoneer Receives Acquisition Offer from Qualcomm; Shares Rise 2.3% appeared first on TipRanks Financial Blog.

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By: Devina Lohia
Title: Veoneer Receives Acquisition Offer from Qualcomm; Shares Rise 2.3%
Sourced From: blog.tipranks.com/veoneer-receives-acquisition-offer-from-qualcomm-shares-rise-2-3/
Published Date: Tue, 14 Sep 2021 12:58:11 +0000

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