SEOUL, South Korea, Feb. 3, 2021 /PRNewswire/ -- On February 3rd, Mando, a leading company in automotive parts, has signed a share purchase agreement (SPA) to acquire 100% of the equity in MHE, a joint venture between Halla Holdings of Korea and HELLA.
MHE, founded in 2008, is a joint venture between Halla Holdings, the parent company of Mando, and German automotive parts supplier HELLA, each holding 50% stake in MHE. Mando has entered into the share purchase agreement (SPA), acquiring 100% of the equity from both Halla Holdings and HELLA at KRW 165 billion. The transaction, approved by each party, is expected to close in the 1st quarter of 2021.
According to industry experts, Mando will strengthen its competitiveness by internalizing the automotive electronics parts business's infrastructure with the complete acquisition of MHE. In terms of products, Mando will not only expand its ADAS product line including the completion of a full line-up of ADAS radars but upgrade its electronically controlled Chassis products through the utilization of approximately 140 R&D personnel within MHE. This will allow Mando to respond to the electrification and autonomous driving trends proactively. Besides, Mando expects to expand its global footprints as it will utilize MHE's overseas manufacturing facilities and sales networks. In particular, it is an excellent opportunity for Mando's ADAS division to secure a wide range of customers from global mobility startups to major automotive manufacturers, not only in China and India, where MHE's production bases are located but also in North America. In addition to the product and the regional expansion, reduction in manufacturing cost and increase in quality competitiveness are expected through vertical integration of the two companies. Furthermore, close cooperation between R&D personnel of both companies in all areas of design, demonstration, and production will enhance the capabilities in developing advanced products and mass production.
"With the complete takeover of MHE, Mando has reinforced its ability to develop and mass-produce automotive electronic components such as control units, sensors, and etc., which is an opportunity for Mando to expand its global presence." says Mando's President Seong-Hyeon Cho.
MHE is a 50:50 joint venture between Halla Holdings of Korea and HELLA of Germany. The company is engaged in manufacturing and developing of automotive electronic parts (DAS -- Driver Assistance Systems) and Electronic Control Units (ECU) for ABS, ESC, and EPS. MHE has R&D manufacturing facilities in Incheon Songdo International City and recorded consolidated sales of KRW 651.2 billion in 2019.
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