All the commercial assets of the Chinese multinational’s economic enterprise will be sold to a parent company.
Huawei’s Chinese telecommunications multinational has decided to sell Honor, its low-cost smartphone brand. Once the business is completed, Huawei will be exempt from the management or decision-making of the new company, according to an official document released by the technology giant on Tuesday.
” Huawei’s consumer business has been under tremendous pressure lately. This is due to the persistent lack of the technical elements needed for our mobile phone business, ”the multinational said in a statement, arguing its decision to say goodbye to Honor.
As for the new owner, all the assets of the business are Shenzhen Zhixin New Information Technology Co. will be for the company, a major company created by more than 30 agents and brands of mobile phone budget brands. The business consortium stresses in a joint statement that the acquisition of the company is an “investment made for market reasons to save the industry chain of honor”. In total, the purchase of the subsidiary could cost about $ 15 billion, according to sources consulted by Reuters.
Neither Huawei nor the future owner of Honor made any reference to the US administration that was putting obstacles in the way of the Chinese giant, under the pretext that Huawei is a threat to US privacy and national security. , the multinational has stressed that the sale is due to problems with supply chains, which have forced Huawei to leave with its low-cost smartphone units.
Since its inception in 2013, Honor has focused on the youth market by offering low- and mid-range mobile phones. Every year, the Chinese brand supplies a total of 70 million devices, according to Huawei.