Buyout target: Veoneer’s losses move closer to deal with Qualcomm
STOCKHOLM, Oct.26 (Reuters) – Swedish automotive technology group Veoneer (VNE.N) on Tuesday reported a smaller third-quarter loss due to a global chip shortage and said it would no longer supply of perspectives as he focused on his impending merger.
Chipmaker Qualcomm Inc (QCOM.O) and SSW Partners said this month they have reached a deal to buy Veoneer for $ 4.5 billion. Read more
The maker of vision systems, radar and software for advanced driver assistance systems (ADAS) has been hit hard by the outbreak of the pandemic. Since then, demand has generally recovered, while the automotive industry faces a shortage of electronic components.
Veoneer, which competes with Aptiv (APTV.N), Bosch, Continental (CONG.DE) and Mobileye (INTC.O), said underlying demand for its products remained very strong, while shortages of semiconductors and supply chain constraints continued to hamper growth.
“We are dealing with this situation on a daily basis and are doing everything possible to help our customers get through this difficult situation,” Veoneer chief executive and president Jan Carlson said in a statement.
Veoneer recorded an operating loss of $ 89 million compared to a loss of $ 103 million in the previous year quarter.
Qualcomm offered in August to buy the Sweden-based company at an 18.4% premium over a July offer worth around $ 3.8 billion by Magna (MG.TO) which had already accepted by the board of directors of Veoneer. Read more
Reporting by Helena Soderpalm; edited by Niklas Pollard
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