Magna International walks away from Veoneer deal
The Canadian PressGeneral Automotive
Auto parts maker waives matching period following Qualcomm out-bid for Swedish tech company.
The Ontario-based auto parts company says it waived a four-day matching period to make a counter-proposal after the Qualcomm offer was ruled to be a superior proposal.
Magna announced a deal to buy Veoneer in July for US$31.25 per share for a total value of US$3.8 billion.
However, Qualcomm stepped in with an offer of US$37 per share for a total value of about US$4.5 billion.
Magna CEO Swamy Kotagiri says the company’s decision underscores its disciplined approach to valuation as it pursues strategic acquisitions.
In connection with the termination of the merger agreement with Magna, Veoneer will pay a break fee of US$110 million.