Qualcomm to acquire Swedish automotive company Veoneer

Chip designer Qualcomm says it has made an offer for the Swedish automotive company Veoneer. Qualcomm has $4.6 billion for that company. This surpasses the chipmaker’s previous offer from Magna International, which offered $3.8 billion.

Qualcomm writes that the acquisition plans are in line with the company’s diversification strategies. The company wants to strengthen its activities in the market for automotive chips with the possible acquisition. The $4.6 billion offer will be paid in cash, not shares. The takeover offer has been approved by Qualcomm’s board and does not require the approval of its shareholders.

Veoneer makes advanced-driving assistance systems, for example for semi-autonomous functions that enable hands-free driving or collision avoidance. Qualcomm is not the only company interested in the Swedish automotive company. Previously, a competitor of Veoneer, Magna International, said it wants to acquire Veoneer for $3.8 billion. The two companies have already reached an agreement. Qualcomm’s bid, however, is 18.4 percent higher.

Qualcomm writes a letter to the board of Veoneer, in which CEO Christiano Amon writes that his company admires Veoneer. “We believe that together we are in a unique position to accelerate competition and create choice for the automotive ecosystem,” Amon wrote.

It is not known whether Magna International’s acquisition plans will now expire. Magna International and Veoneer have not yet responded to Qualcomm’s offer.