Chinese tech giant Huawei has finally sold its subsidiary Honor to the Shenzhen’s Zhixin New Information Technology Co. Ltd. that was founded in 2011 as an online-only brand in China and other countries.
As per the joint statement released confirming the acquisition, the new owner of the Honor brand is a consortium of over 30 agents and dealers of the Honor brand and the Shenzhen Smart City Development Group Co. Ltd. that is a subsidiary of the Shenzhen SASAC (98.6% shares) and Shenzhen state-owned Assets Cooperative Development Private Equity Partnership (1.4% shares).
The official statement notes that Zhixin New Information Technology “will acquire all business assets releated to the Honor Brand”, and “once the acquisition is complete, Huawei will not hold any shares in the new Honor company”.
The released statement does not reveal the acquisition cost but some reports put the figure at about $15 billion.
The decision to sell the Honor brand is necessary to save the brand from the issues that its parent company Huawei has been facing since the company was placed on the US Commerce Department’s entity list.