Automotive technology company Veoneer will enter discussions with Qualcomm, which has proposed to acquire the company for $4.6 billion, or $37 a share. Veoneer this week announced that its board of directors had determined that Qualcomm’s proposal would be “reasonably expected to result in a Superior Proposal as defined under the terms of Veoneer’s merger agreement with Magna.” Veoneer, in July, entered into an agreement with mobility technology company Magna International where Magna would acquire Veoneer for $3.8 billion. That agreement remains “in full force and effect,” a press release from Veoneer stated, and under the agreement, Veoneer has the ability to terminate the agreement prior to stockholder approval to enter a transaction based on a competing proposal. Should Veoneer decide to accept Qualcomm’s proposal, which it acknowledged on Aug. 5, it would need to pay Magna a termination fee of $110 million. Veoneer develops computer vision and driver assistance technology.
