Huawei to sell Honor to Chinese consortium in $15 billion deal

Huawei plans to move its Honor smartphone division to a China-based consortium, according to a new report from Reuters. According to the report, a consortium led by distributor Digital China and the Shenzhen government plans to buy the brand for ~ $ 15.2 billion.

That massive number will reportedly include Honor’s research, development and sales units. In particular, the report only mentions the brand’s smartphone division, so it is unclear whether the sale will also include Honor’s other product ranges.

Honor Huawei: Streamlining Its Business

The news of a potential sale first broke in October when TCL and Xiaomi were named as potential buyers. Regardless of who is buying Honor, selling is reportedly key in repositioning Huawei’s market.

In the midst of the ongoing trade restrictions in the US, Huawei is now relying on “high-end cell phones and business-oriented” devices. Huawei saw a sharp drop in shipments in major global markets in 2020. A lucrative sale of Honor will go a long way in making up for some of the company’s losses right away.

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For Honor, a new owner could open the company to a possible exemption from US bans. However, given how much of Huawei’s technology is currently anchored in the brand, it seems unlikely. It is also possible that the U.S. government – even the new administration – is putting pressure on companies to buy some of the Huawei-related businesses. Ultimately, an honor purchase could be a potentially lucrative deal, but it could poison the cup for the wrong bidder.

We may not have to wait long for confirmation. The report claims Huawei could announce the deal as early as Sunday, November 15th.

In a request for comment, Honor said Android Authority that there are no “comments” for the time being.

Continue reading: U.S.-China Trade War: Why Every Chinese Phone Maker Should Prepare For The Worst