Magna Announces Termination of Merger Agreement With Veoneer
October 04 2021 - 8:05AM
Magna International Inc. (TSX: MG; NYSE: MGA) today announced that
the board of directors of Veoneer, Inc. has determined that the
previously announced proposal by Qualcomm Incorporated to acquire
Veoneer for $37 per share is a superior proposal under the terms of
the previously announced merger agreement between Magna and
Veoneer, and that Magna has waived the four-day matching period to
make a counterproposal. Accordingly, Veoneer has terminated its
merger agreement with Magna and entered into a merger agreement
with Qualcomm.
In connection with the termination of the merger agreement with
Magna, Veoneer will pay a termination fee of $110 million to
Magna.
“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 Swamy Kotagiri,
Magna's CEO. “We remain confident in our long-term value creation
potential and our path forward as one of the world’s largest
automotive suppliers and key enabler to meet future mobility
needs.”
TAGSVeoneer Acquisition, Merger Agreement, ADAS
INVESTOR CONTACTLouis Tonelli, Vice-President, Investor
Relations louis.tonelli@magna.com, +1 (905) 726 7035
MEDIA CONTACT Tracy Fuerst, Vice President, Corporate
Communications and PRtracy.fuerst@magna.com, +1 (248) 761
7004
ABOUT MAGNA Magna is more than one of the world’s largest
suppliers in the automotive space. We are a mobility technology
company with a global, entrepreneurial-minded team of 158,000
employees and an organizational structure designed to innovate like
a startup. With 60+ years of expertise, and a systems approach to
design, engineering and manufacturing that touches nearly every
aspect of the vehicle, we are positioned to support advancing
mobility in a transforming industry. Our global network includes
347 manufacturing operations and 87 product development,
engineering and sales centers spanning 28 countries.
For further information about Magna, please visit www.magna.com
or follow us on Twitter @MagnaInt.
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