The last year has been a tough time for Chinese multinational technology firm Huawei. After being banned by Google from using its services, everything started to go against the Shenzhen-based company. The newest in the list is the Honor brand. Reuters have confirmed that the budget brand unit has been sold to a syndicate of over 30 agents and dealers – based on a joint statement signed by some 40 companies involved in the purchase.
After the sale is final, Huawei won’t be able to hold any shares in the new company, which the buyers are setting up under the name of Shenzhen Zhixin New Information Technology.
The statement said, “The sale represents a market-driven investment made to save Honor’s industry chain, and the change of ownership will not impact Honor’s development direction.” Even though the sale is confirmed, no figure for the deal was mentioned in the statement. However, Reuters reported that figure to be around 100 billion yuan, or $15.2 billion.
Nicole Peng, mobility vice president at researcher Canalys, said, “It seems to be a drastic move given the Honor brand has been highly complementary to Huawei’s smartphone portfolio. The interesting synergy with potential buyers actually can be Honor’s IoT (Internet of Things) business.”