Mando Acquires MHE for 165 Billion KRW... Accelerates Global Expansion of Autonomous Driving Parts Business

MHE Autonomous Driving and Electronic Components Lineup

[Photo by Mando]

[Asia Economy Reporter Ki-min Lee] Mando announced on the 3rd that it has officially entered the global autonomous driving parts market by acquiring Mando Hella Electronics (MHE), a company specializing in autonomous driving and electronic components.

The acquisition amount is 165 billion KRW, covering the entire shares held equally by Germany's Hella and Halla Holdings, each owning 50%.

Established in 2008, MHE is a company specializing in autonomous driving and electronic components, producing and designing key parts (ECUs) related to recognition components of Advanced Driver Assistance Systems (ADAS), as well as control devices such as brakes and steering. As of 2019, its sales reached 651.2 billion KRW, and sales for last year are expected to be 687.4 billion KRW.

Mando plans to expand its development capabilities and diversify its product lineup by collaborating with about 140 R&D experts in electronic and software development from MHE.

While independently developing and mass-producing short-range radar to complement the existing mid- to long-range radar lineup, Mando will also focus on developing in-cabin occupant detection sensors and next-generation integrated controllers. Through this, Mando aims to strengthen its capability to supply a full package of autonomous driving parts, including radar, cameras, and integrated controllers.

Additionally, Mando plans to expand its business in China and India by utilizing MHE's overseas production bases, and based on this, enter the North American and European markets.

The purpose of acquiring MHE also includes in-house production of core autonomous driving components. With this acquisition, Mando will independently carry out the full cycle of product design, validation, and production. Accordingly, it plans to enhance competitiveness in terms of cost and quality and respond flexibly to diverse customer demands arising from the advancement of autonomous driving technology.

The high-performance ECU controlling the freely mountable advanced driving system (SbW) and the next-generation high-performance long-range radar, which Mando showcased at CES 2021, the world's largest IT and electronics exhibition last month, will also be mass-produced at MHE.

Jung-hyun Cho, Mando's CEO, said, "This big deal will be an opportunity to level up Mando's autonomous driving technology," adding, "By producing core autonomous driving components in-house, we will not only improve cost and quality competitiveness but also compete in the global market through agile customer response."