Huawei announced on its official website that it sold its sub-brand Honor to a local consortium on the grounds that industrial technology elements are unsustainable.
The sub-brand Honor, which stands out with the price / performance-oriented products of the Chinese technology giant Huawei, is the Shenzhen Zhixin New Information Technology Co. It was officially sold to a local consortium named Ltd.
Once the purchase is complete, Huawei will not own any stake in the Honor. The established consortium will own 98.6 percent of Honor, and the Shenzhen government will own 1.4 percent.
Huawei was rumored to sell Honor for $15 billion
According to the initial statements, the purchase will not affect Honor’s business activities. Honor senior management will continue to work after the purchase. Likewise, more than 7,000 employees working in different units of the company will continue to work.
When the news that Honor would be sold to a local venture group, it was said that the deal would be about $ 15 billion, but so far neither Huawei nor Shenzhen Zhixin New Information Technology has disclosed how much Honor has been sold.
Honor was sold to “protect the interests of consumers, suppliers, partners and employees”
According to information reported by a local newspaper named Shenzhen Special Zone Daily; It aims to protect the interests of consumers, suppliers, partners and employees.
Again, according to the information shared on the subject, all investors who contributed to the formation of the consortium will continue to support the brand, suppliers, production and services in order for Honor to participate in the competition in the market more effectively.
Huawei: Honor has become a popular smartphone brand in 7 years
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 in a difficult time when industrial technology elements are unsustainable and consumer businesses are under great pressure. ” used the expressions.
Expressing that Honor was established in 2013 to produce affordable products for young people and has become a popular smartphone brand with 70 million sales annually in 7 years, Huawei has made Honor have any shares or management and decision He underlined that he will not have the authority to buy.