Honor, A Sub-Brand Of Huawei, Is Sold

Honor, A Sub-Brand Of Huawei, Is Sold

Huawei made a statement from its official website. The company announced that its sub-brand Honor was sold to a local consortium on the grounds that industrial technology elements are unsustainable. The sub-brand Honor, which stands out with its price / performance-oriented products within Chinese technology giant Huawei, was officially sold to a local consortium named Shenzhen Zhixin New Information Technology Co. Ltd. Once the transaction was completed, Huawei will not have any claims in the Honor company. The established consortium will own 98.6 percent of Honor, and the Shenzhen government will own 1.4 percent.

According to the initial statements, the purchase will not affect Honor‘s business activities. However, Honor senior management will continue to work after the buyout. Likewise, more than 7,000 employees working in different units of the company will continue working in their jobs as well. When the news surfaced that Honor might be sold, there were assumptions that the deal would be approximately $ 15 billion. However, neither Huawei nor Shenzhen Zhixin New Information Technology has disclosed Honor‘s fee so far.

In a statement on the official website regarding the acquisition, Huawei said, “Huawei Investment Holding Co. Ltd. has decided to sell Honor‘s business assets as a whole so that Honor can continue its operations during this difficult times when industrial technology elements are unsustainable and consumer businesses are under great pressure. “. Honor was founded in 2013 to create affordable products for young people. It has become a popular smartphone brand with 70 million sales annually, for over a 7 years period. Huawei emphasized, when the acquisition is complete, Honor will not have any shares or management and decision-making rights anymore.