After chipmaker Qualcomm submitted an offer for Veoneer, a $3.8 billion sale of the Swedish auto tech company Veoneer to Magna International was stalled. Magna International offered $800 million more.The company's $4.6 billion bid for Qualcomm, which is $37 per share at the current price, has been approved by its board. Stockholders would not be required to vote on the offer, the chipmaker stated in a statement. Magna and Veoneer both confirmed that the acquisition was approved by their respective boards in July.Veoneer, a developer of advanced driver assist systems, decision-making hardware and software, is a company that specializes in developing such technologies. These include emergency braking, changing lanes on the highway, and other actions. Although ADAS is far from self-driving cars it has become a very popular feature that can be found in a larger number of vehicles.Magna and Qualcomm are waging a bidding war for ADAS technology. Each company is trying to be competitive with Tier-1 ADAS suppliers Continental, Bosch and Bosch. Magna's market capitalization is currently $25.3 billion and Qualcomm's is $164.8 billion. Magna is yet to submit a counter-bid.The new offer has been received well by the market, and Veoneer's stock price rose nearly $7 between Wednesday and Thursday, when it was $31.22 to $38.20. Veoneer stock was at $19.93 before Magna announced the sale on July 23.Veoneer was created in 2018 by Autoliv, a manufacturer of automotive safety systems. Zenuity was a joint venture formed by Veoneer and Volvo Cars. It focused on advanced driver aid systems. The venture was eventually split in July.Qualcomm also has an existing relationship with the ADAS developer. In January, the two companies entered into an agreement to work together on an ADAS platform.
