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3/13/2017, 1:08 PM (Source: TeleTrader)
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Intel acquires Mobileye for $15.3 billion

Intel Corporation said on Monday it would buy Mobileye for $15.3 billion, marking the biggest ever cross-border acquisition of an Israeli company by a foreign one, according to the Financial Times. The transaction also represents one of the most notable deals so far in the emerging field of driverless vehicles, the report said.

The definitive agreement stipulates that a subsidiary of the American chip giant will initiate a tender offer to purchase all of Mobileye's shares for $63.54 in cash, the newspaper said. The deal is touted as one that would accelerate innovation in the automotive sector and provide Intel with a leading position as a technology provider in the self-driving cars market, it added.

Mobileye, which develops autonomous driving technology, saw its shares rally 30.2% to trade at €57.353 in Frankfurt at 12:48 pm CET, while Intel's lost 1.01%, going for €33.26 per share at 1:05 pm CET on the same exchange.

Breaking the News / IB