EUR 426.65 For Business Accounts Only

BUY Both Passive & Active Safety Auto Part Companies After July 2 Spinoff

What was once a Spinoff from Electrolux more than 20 years ago, the Swedish firm and the world’s largest airbag and seatbelt supplier Autoliv, Inc. (ALV) announced on September 14, 2017 that it was conducting a strategic review that seemed likely to result in the Spinoff of its Electronics segment, and the stock surged by +12% (vs. a flat index return) on the news. Now, approximately nine months since the announcement and three months since the initial Form 10 filings, the company will complete that separation on July 2, 2018.

The Edge View...
On July 2, 2018, Swedish passive safety auto parts maker Autoliv, Inc. (ALV) will separate its Electronics segment (which develops active safety auto parts) Veoneer, Inc. (VNE). There are many positives to this situation post-Spin, as the stock has rallied significantly since the announcement in September 2017 of the strategic review and the formal announcement of the Spinoff in December 2017.

The interesting points that may be found in the full analysis are as follows: Industry dynamics and trends (Delphi break-up); Autonomous driving - the next big growth catalyst; Europe's largest activist takes interest; Strong balance sheet is a key positive; Potential takeover target; Strong CEO track record; Veoneer, the fast-growing segment; Autoliv is the dominant player in Passive Safety after Takata's Bankruptcy; Sustainable strategic growth outlook of each segment will tap potential market;