Huawei sells Honor to consortium of agents and dealers

Huawei sells Honor to consortium of agents and dealers


MarketBusiness

Anna Savelieva | 11/17/2020

Huawei sells Honor to consortium of agents and dealers

The purchase will be made through the new Shenzhen Zhixin New Information Technology. Huawei will not own Honor shares after the sale.

Selling to a consortium of more than 30 agents and dealers is essential to keep the brand alive and to ensure its survival. Recall that due to the government sanctions that have come into force
Huawei’s US consumer business has come under tremendous pressure due to constant unavailability of technical elements, as a result of which the company is forced to focus on mobile devices
premium class and corporate segment.

Both companies say the change in ownership will not affect Honor’s direction. The amount of the deal was not disclosed, but it was previously reported that it could amount to $ 15.2 billion.

Also last week it became known that the transaction will involve investment firms supported by the authorities of the city of Shenzhen (where Huawei is headquartered), but the distributor of smartphones
Digital China is not part of the shopper group, unlike electronics and home appliances store Suning.com. It is important to note that the sale will not only help support the brand, but at the same time will give
the ability to buy back Honor.

Mergers and acquisitions

Huawei



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