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Magna International Inc. is walking away from its deal to buy Swedish tech company Veoneer Inc. after its offer was topped by Qualcomm Inc .

The Ontario-based auto parts company says it waived a four-day matching period to make a counter-proposal after the Qualcomm offer was ruled to be a superior proposal.

Magna announced a deal to buy Veoneer in July for US$31.25 per share for a total value of US$3.8-billion.

However, Qualcomm stepped in with an offer of US$37 per share for a total value of about US$4.5-billion.

Magna CEO Swamy Kotagiri says the company’s decision underscores its disciplined approach to valuation as it pursues strategic acquisitions.

In connection with the termination of the merger agreement with Magna, Veoneer will pay a break fee of US$110-million.

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