Magna International (TSX:MG) (NYSE:MGA) is acquiring Veoneer for $3.8 billion U.S. in cash, bolstering its business supplying advanced driver-assistance systems to automakers around the world.
The $31.25 U.S. per share offer represents a 57% premium to Veoneer’s current stock price of $19.93. The transaction is expected to close by the end of this year. Magna and Veoneer said the deal has been unanimously approved by their respective boards.
Veoneer was spun off by leading automotive supplier Autoliv in 2018. The company’s shares lost more than half their value after the split as orders slumped and the company experienced mounting financial losses.
Automakers and their large suppliers have struggled to commercialize autonomous-driving technology due to the high costs and engineering challenges.
