(Bloomberg) -- Qualcomm Inc. has offered to buy automotive technology company Veoneer Inc. for $4.6 billion, muscling in on a rival bid from Magna International Inc.
Magna said last month that it would acquire Veoneer, offering $31.25 a share, or $3.8 billion, in a deal the companies said was unanimously approved by their boards. Qualcomm’s offer, at $37 a share, is 18% higher than the Magna bid, wouldn’t require Qualcomm stockholder approval and would be paid for in cash, the San Diego-based chipmaker said on Thursday in a statement.
In a letter to Veoneer’s board of directors, Qualcomm Chief Executive Officer Cristiano Amon said his company had long admired Veoneer. “We believe that together we are uniquely positioned to accelerate competition and create choice for the automotive ecosystem,” Amon wrote.
Veoneer makes driver-assistance technology. Semi-autonomous features like hands-free driving and crash-avoidance technology have become hotly contested battlegrounds as automakers seek to boost prices, best rivals with options that command a premium, and give drivers high-tech bragging rights. In response, global automotive suppliers are increasingly positioning themselves to benefit from the growth in advanced safety features in passenger cars.
Magna declined to comment. Veoneer wasn’t immediately available for comment.
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