Huawei, the Chinese giant which is facing several difficulties after several restrictions imposed by the United States, is reportedly planning to sell its Honor sub-brand. It is said that Huawei could sell its Honor arm for about 100 billion yuan, which is approximately $15.2 billion.
As per the report, Honor brand will be sold to Digital China Group and the Government of Shenzhen. It further adds that the deal will be an all-cash transaction which will include almost every asset, including branding, research and development capabilities, and even supply chain management.
The deal has not been officially announced by the company but it is reported that the company to make this public by the end of this week. There won’t be much impact for the employees as Honor plans on retaining its management and more than 7,000 employees after the deal goes through.
The company has been looking to sell the Honor unit for some time as it is struggling to source necessary components to make smartphones after the ban imposed by the United States government.
Honor brand was formed by Huawei in 2013 but the company is mostly working independently. It is selling smartphones in China through its own websites as well as third-party retailers. Apart from China, the company also has presence in other Southeast Asia and Europen markets in the budget and mid-range category.