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$162.4 -0.1  -0.1%

Consumer Cyclicals
Large Cap
Market Cap £28.42bn
Enterprise Value £29.39bn
Revenue £11.50bn
Position in Universe th / 7157

BUZZ-Magna/Veoneer deal 'makes sense', analysts say

Fri 23rd July, 2021 12:34pm
(Adds analysts comments, milestones)
    ** Stockholm-listed shares in Veoneer  VNEsdb.ST  surge 55%
after definitive merger agreement with Canada's auto parts maker
Magna International  MG.TO , with analysts cheering the deal's
rationale  urn:newsml:reuters.com:*:nL4N2OZ01M
    ** Magna offered $31.25 per share in cash for the Swedish
supplier of automotive safety products, representing a 57%
premium to closing price and valuing that business at $3.3
    ** The deal makes sense on both ends, Jefferies says,
enabling Magna to expand advanced driver assistance system
(ADAS) capabilities and providing Veoneer access to a strong
balance sheet
    ** Berenberg adds the deal could make Magna one of the top
five ADAS suppliers along with Bosch, ZF, Continental  CONG.DE 
and Aptiv  APTV.N 
    ** The broker says, however, that it is "somewhat surprised
by the premium paid for a business that has yet to be profitable
and continues to burn cash" 
    ** Veoneer's Swedish shares are up 55%, hitting two-year
highs and enjoying their best day since listing in 2018

 (Reporting by Boleslaw Lasocki, Izabela Niemiec)
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