Topic: How To Invest

Power Growth Investor Hotline – Friday, August 6, 2021

Article Excerpt

VEONEER INC., $38.69, is now a takeover hold. The company (symbol VNE on New York) makes automotive radar, cameras with driver-assist systems, night-vision equipment, positioning systems and brake controls. Swedish-based Autoliv Inc. (symbol ALV on New York) spun off Veoneer to its shareholders on June 29, 2018. Autoliv shareholders received one VNE share for every ALV share they held. We said in the July 2021 issue of Power Growth Investor that we thought Veoneer could well become a takeover target—including from Qualcomm (symbol QCOM on Nasdaq). On July 22, 2021, Canadian auto-parts maker Magna International Inc. (symbol MG on Toronto) offered $31.25 in cash for each share of Veoneer. That caused Veoneer shares to jump 57%. While fully self-driving vehicles for consumers are likely years away, assisted-driving features, such as adaptive cruise control, are becoming more common. The deal for Veoneer will help Magna to close the gap with market leaders Aptiv, Bosch and Continental. The acquisition would also expand Magna’s ADAS (advanced driver-assistance…