Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. Magna International Inc.
  6. News
  7. Summary
    MG   CA5592224011

MAGNA INTERNATIONAL INC.

(MG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Magna's $3.8 bln Veoneer buy to drive car safety business

07/22/2021 | 09:12pm EDT
FILE PHOTO: Jan Carlson, CEO of Veoneer, Inc., rings the opening bell to celebrate it's first day of trading on the floor of the NYSE in New York

July 22 (Reuters) - Canadian auto parts maker Magna International Inc on Thursday agreed to buy Swedish rival Veoneer Inc for about $3.8 billion in cash to boost its efforts to build driver assistance tech geared toward autonomous vehicles.

Veoneer makes advanced driver assistance systems, known in the industry as ADAS, that add features ranging from collision warning to parking assist. Some systems collect data from cameras and radar to monitor surroundings, interpret the situation and take action.

Veoneer's Stockholm-listed shares rose 55% in early trade.

While fully self-driving vehicles are years away, assisted-driving features, such as adaptive cruise control, are becoming more common and the deal will help Magna to close the gap with market leaders Aptiv, Bosch and Continental.

"With the recent acquisition of Veoneer, we believe Magna is likely a fourth leading player with the opportunity to more directly compete with the big three," Jefferies analyst David Kelley wrote in a research note.

Magna will buy out Veoneer's outstanding shares for $31.25 each, and the acquisition represents an enterprise value of $3.3 billion including debt, the companies said in a joint statement.

Stockholm-based Veoneer's market value was $2.23 billion based on its Thursday closing price, Refinitiv Eikon data showed.

After its 2018 spin-off from Sweden's Autoliv, the world’s largest producer of airbags and seatbelts, Veoneer suffered from a slump in light vehicle production and a global chip shortage, but demand has rebounded this year.

Veoneer on Friday reported 116% jump in second-quarter net sales to $398 million as North American and European carmakers add radar and camera systems in their upcoming models.

The acquisition will expand Magna's ADAS business with major customers, provide access to new customers and regions and save about $100 million in annual costs by 2024, the company said.

The boards of both companies have approved the deal, which is expected to close by the end of this year. (Reporting by Anirudh Saligrama and Derek Francis in Bengaluru, Supantha Mukherjee in Stockholm; Editing by Subhranshu Sahu and Barbara Lewis)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BOSCH LIMITED -0.61% 15260.65 End-of-day quote.19.33%
CONTINENTAL AG 0.28% 94.72 Delayed Quote.-13.68%
MAGNA INTERNATIONAL INC. -0.81% 97.71 Delayed Quote.8.43%
All news about MAGNA INTERNATIONAL INC.
09/21MAGNA INTERNATIONAL : And Veoneer Announce Expiration Of Hart-Scott-Rodino Waiting Period ..
PU
09/21MAGNA INTERNATIONAL : Progresses With $3.8 Billion Veoneer Purchase As Waiting Period Expi..
MT
09/20Magna And Veoneer Announce Expiration Of Hart-Scott-Rodino Waiting Period
GL
09/15MAGNA INTERNATIONAL : Deutsche Bank on Magna/Veoneer
MT
09/14MAGNA BRIEF : Up Near 0.25% In US Pre-Market Trade As Veoneer Appears Set To Go With Magna..
MT
09/14Veoneer May Start Merger Talks With Qualcomm But Says Superior Proposal Not Guaranteed
MT
09/14QUALCOMM : Veoneer Receives Updated Nonbinding Takeover Bid from Qualcomm
MT
09/13Veoneer Says It Received Updated Proposal From Qualcomm
DJ
09/13Qualcomm Reportedly Makes $37-a-Share Bid for Veoneer
MT
09/09Veoneer Says It Continues Recommend Magna Merger, But Holding Talks With Qualcomm
MT
More news
Analyst Recommendations on MAGNA INTERNATIONAL INC.
More recommendations
Financials (USD)
Sales 2021 38 370 M - -
Net income 2021 2 042 M - -
Net Debt 2021 1 423 M - -
P/E ratio 2021 11,6x
Yield 2021 2,23%
Capitalization 23 204 M 23 146 M -
EV / Sales 2021 0,64x
EV / Sales 2022 0,55x
Nbr of Employees 158 000
Free-Float 99,4%
Chart MAGNA INTERNATIONAL INC.
Duration : Period :
Magna International Inc. Technical Analysis Chart | MG | CA5592224011 | MarketScreener
Technical analysis trends MAGNA INTERNATIONAL INC.
Short TermMid-TermLong Term
TrendsNeutralBearishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 17
Last Close Price 77,16 $
Average target price 97,63 $
Spread / Average Target 26,5%
EPS Revisions
Managers and Directors
Seetarama Kotagiri President & Chief Executive Officer
Vincent J. Galifi Chief Financial Officer & Executive Vice President
Bill L. Young Chairman
Paul Bellack Vice President-Information Technology
Sherif Salah Marakby Executive Vice President-Research & Development
Sector and Competitors
1st jan.Capi. (M$)
MAGNA INTERNATIONAL INC.8.43%23 146
DENSO CORPORATION27.76%54 622
APTIV PLC15.92%40 855
WEICHAI POWER CO., LTD.5.66%23 082
CONTINENTAL AG-21.88%22 183
HYUNDAI MOBIS CO.,LTD1.76%20 199