Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 2, 2020, the Company entered into a non-binding agreement with Volvo Cars to separate Zenuity, a 50% ownership joint venture with Volvo Cars.

Veoneer expects to bring more than 200 of the current Zenuity employees into its systems and software team. The Zenuity development centers in U.S and Germany will become part of Veoneer’s research and development organization. The development centers in Sweden and China will become part of a new stand-alone company wholly owned by Volvo Cars. As part of the intended transaction Veoneer expects to receive a payment of around $15 million, subject to final agreement.

The process to separate the Zenuity joint venture has started and is expected to be completed during the third quarter 2020.

On April 23, 2020, Veoneer announced the entry into a non-binding agreement to divest VBS. The agreed purchase price is $1. The transaction is expected to be completed during the second quarter of 2020.

On April 24, 2020, a wholly-owned subsidiary of the Company entered into a credit agreement with a customer pursuant to which it may borrow an aggregate amount of up to of $17 million in the form of term loans. The proceeds of any such term loans may only be used to fund costs and expenses incurred by the subsidiary for such customer’s projects. Obligations incurred under the credit agreement are guaranteed by the Company.