Hella says it intends to sell its 50% percent share in South Korean joint venture, Mando Hella Electronics (MHE) to Mando.

The partners have now signed a corresponding agreement.

The transaction is expected to close in the first quarter of calendar year 2021, with the price being around EUR60m (US$73m).

“We have worked very successfully with Mando in South Korea over the last twelve years and have further strengthened our position in the very important South Korean market,” said Hella CEO, Rolf Breidenbach.

“To meet the growing demands of South Korean customers even better with regard to global coverage and to give them access to our entire product range, especially in the areas of electrification and autonomous driving, we will now further push our direct business based on our global development and production network.”

The joint venture, Mando Hella Electronics, based in Incheon, South Korea, was founded in 2008. The product range includes components such as driver assistance systems, sensors, brake control systems, steering control systems.

Customers include in particular, South Korean car manufacturers and system suppliers. In fiscal year 2019/2020, the joint venture generated sales of around EUR480m with 1,300 employees at four locations.