On Feb. 3, Mando, a leading company in automotive parts, signed a share purchase agreement (SPA) to acquire 100% of the equity in Mando Hella Electronics (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 first quarter of 2021.
Mando says it 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 also 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. In addition, Mando expects to expand its global footprints as it will utilize MHE’s overseas manufacturing facilities and sales networks.
In particular, Mando says this is an excellent opportunity for the company’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,” said Mando’s President Seong-Hyeon Cho.