Auto tech company Veoneer announced on Sunday it will enter discussions with Qualcomm over a merger, calling the Qualcomm proposal “superior” to an earlier merger deal with Magna.
The merger agreement with Magna announced on July 23 remains in full effect in the meantime, Veoneer said in a statement. That agreement was valued at $31.25 per share, well short of the Qualcomm offer.
Qualcomm offered $37 a share for the Sweden-based Veoneer on Thursday, or about $4.6 billion, according to a letter Qualcomm CEO Christiano Amon sent to the Veoneer board.
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Veoneer makes computer vision, drive policy and driver assistance technology, which Qualcomm would match with its Snapdragon Drive platform for Advance Driver Assistance Systems being widely rolled out in vehicles globally.
“Together we are uniquely positioned to accelerate competition and create choice for the automotive ecosystem,” Amon said in his letter to the Veoneer board last week.
Keybanc and other analysts said Magna is unlikely to match Qualcomm’s bid.