After weeks of rumors, Huawei sanctioned it is selling Honor to a consortium of corporations, including government-backed firms, Honor’s spread marriages and suppliers, in a move to save its budget phone label from U.S. pressure.
The decision was announced in a joint statement liberated Tuesday morning in a local Shenzhen paper. Once the transaction is complete, Huawei won’t harbour any shares in Honor or be involved in the phone brand’s management and decision-making, though Honor’s busines tendency and handling team will remain intact.
” This acquisition represents a market-driven financing made to save Honor’s equip series. It is the best solution to protect the interests of Honor’s buyers, canal marketers, suppliers, collaborators, and employees ,” said the statement signed by the 40 companies.
Huawei lost major chip and software suppliers after the U.S. government swiped trade sanctions on the telecoms equipment and smartphone monster. A spin-out can in theory spare Honor, a sub-brand launched to counter Xiaomi’s cheap, online-focused smartphones, from the give series rules that have impress Huawei hard.
In the meantime , nobody in the consortium poses an existential threat to Huawei’s market position. That leaves fairly leeway for Huawei if it ever wants to buy Honor back from the group of government-backed firms and phone marketers and agents.
Members in the consortium include Shenzhen Smart City Technology Development Group, a state-backed organization tasked with promoting massed, 5G, smart municipality tech amongst other state enterprises; China Postal and Telecommunications Gizmo, a state-owned distribution provider of telecoms commodities; and electronics retailers like Suning and Sundan.
The announcement did not employed a price tag on the buy, though Reuters previously reported it could overhead 100 million yuan ($ 15 billion ).
The story was updated with more context and the headline was updated to clarify the buyers include” state-backed firms” rather than the “government”.