Michael Sprung discusses Magna International
Magna International Inc. has lost out to Qualcomm Inc. and its partner in the tug-of-war over Stockholm-based automotive technology company Veoneer Inc.
Qualcomm announced in a release early Monday that it reached a formal agreement, along with New York-based SSW Partners, to buy Veoneer for US$37 per share in cash. That trumped the friendly deal that Magna struck in July to purchase Veoneer for US$31.25 per share.
For its troubles, Magna is walking away with a US$110-million break fee that’s being paid by Veoneer after the Canadian auto parts maker balked at making a new offer.
“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,” said Magna Chief Executive Officer Swamy Kotagiri in a release.
Once the new takeover arrangement closes, SSW will take ownership of Veoneer and sell the company’s Arriver business to Qualcomm, the companies said in their release.