Veoneer (NYSE:VNE) trades up 54.94% to $30.88 to sit just short of the $31.25 offer from Magna International (NYSE:MGA).
The deal includes Veoneer's Arriver platform, jointly developed with Qualcomm, which will operate as a separate business unit. In addition, Veoneer's passive safety electronics and ADAS sensor business will be integrated into Magna's electronics business unit.
The deal has been approved by the board of directors of both companies. Veoneer's major shareholders AMF, Cevian, AP4 and Alecta have all entered into support agreements with Magna or provided indications of support, per Morgan Stanley.
The merger is expected to close towards the end of 2021.