u.s. semiconductor giant qualcomm has proposed a $4.6 billion takeover to swedish auto parts company vionia.
🟩 qualcomm plans to outperform magna
magna has already approved a $3.8 billion cash takeover offer by canadian auto parts giant magna. qualcomm has released the magna 18. we presented a 4% higher acquisition plan. veonia means “scrutinizing qualcomm’s proposal.”
THE ACQUISITION WILL FURTHER EXPAND VEONIA’S STRENGTHS ADVANCED DRIVER ASSISTANCE SYSTEMS (ADAS) BUSINESS, WITH NEW CUSTOMERS AND EXPANSION INTO REGIONS SUCH AS ASIA.
🟩 entry into the automotive field
AUTOMOTIVE PRODUCTS ACCOUNT FOR ABOUT 3% OF QUALCOMM’S SALES, AND WE WANT TO SIGNIFICANTLY INCREASE THIS. LAST YEAR, QUALCOMM DEVELOPED ITS OWN ADAS SYSTEM CALLED THE SNAPDRAGON RIDE. THE PROPOSED ACQUISITION OF VEONIA IS AIMED AT SYNERGIZING WITH ADVANCED DRIVER ASSISTANCE SYSTEMS SUCH AS COLLISION PREVENTION AND PARKING ASSIST.
qualcomm waited to acquire magna belonia in order to enter the automotive sector.
CONTINENTAL AND BOSCH, WHICH ARE FAMOUS FOR THEIR ADAS SYSTEMS, WILL HAVE A HARD TIME RECRUITING NEWCOMERS TO QUALCOMM. SO WHILE WE CAN UNDERSTAND THE STRATEGY OF BUYING A MID-SIZED COMPANY BEONIA TO EXPAND ITS SALES CHANNELS, NO ONE KNOWS IF IT WILL SUCCEED.