In a statement Veoneer Inc said, it would start acquisitions negotiations with chipmaker Qualcomm Inc after its offer for the Swedish auto parts maker topped a rival bid by Magna International Inc.

Qualcomm’s offer could “reasonably be expected to result in a ‘Superior Proposal’, as defined under the terms of Veoneer’s merger agreement with Magna,” said the board in a statement. “As a result of the Board’s determination, Veoneer may under the terms of the Merger Agreement engage in discussions with Qualcomm based on the Qualcomm Proposal and Veoneer intends to do so.”

On August 5, Qualcomm had said, it had offered $4.6 billion to acquire Veoneer; its bid represents an 18.4% premium to Magna’s July bid which had already been accepted by Veoneer’s board.

Magna’s bid was worth around $3.8 billion.