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Officially: HUAWEI sold the HONOR brand

17 November 2020, Tuesday By Elena Arich

Last week, Reuters reported that HUAWEI has decided to sell its subsidiary brand HONOR in order to withdraw it from US sanctions. The deal was officially confirmed today: the buyer was a large consortium of 40 Chinese companies.

HUAWEI sold the HONOR brand

According to Chinese media, after the deal is completed, HUAWEI will completely exit the HONOR business and will not even have a minority stake in the brand. A separate company, Shenzhen Zhixin New Information Technology, was created for the takeover procedure by the consortium. By implementing such a step, HUAWEI plans to completely remove the brand from the influence of US sanctions, since legally HONOR will belong to 40 companies at once.

Journalists called this decision "an investment to save the brand." At the same time, the consortium gets the opportunity to research and develop on the basis of the existing facilities of HONOR. According to experts, HONOR has a staff of 7,000 people, but the change in management will in no way affect the future work of the company. The estimated amount of the deal, not yet confirmed by its participants, is $15.2 billion. The new owner plans to bring the company to the stock exchange within three years. 

As for HUAWEI, it is expected that after the sale of HONOR is completed, the vendor will focus on releasing its own smartphones. Earlier it became known about the resumption of cooperation between the manufacturer and the American Qualcomm, which received a license to supply branded chips to a Chinese partner.

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