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All the commercial assets of the economic company of the Chinese multinational will be sold to a parent company.
The Chinese telecommunications multinational Huawei has decided to sell Honor, its low-cost smartphone brand. Once the business is complete, Huawei will be exonerated from any management or decision-making in the new company, the official statement, released by the tech giant on Thursday, said.
” Huawei’s consumer business has been under enormous pressure recently. This is due to a persistent lack of technical elements necessary for our mobile phone business, ” the multinational reported in the statement, supporting its decision to say goodbye to Honor.
As for the new owner, all corporate assets will go to Shenzhen Zhixin New Information Technology Co., a parent company created by more than 30 agents and merchants of the affordable smartphone brand. The business consortium points out in its joint statement that the Honor acquisition is “an investment for market reasons to save Honor’s industrial chain”. In total, according to the estimates of sources consulted by Reuters, the purchase of the subsidiary could be worth around 15,000 million dollars.
Both Huawei and the future owner of Honor made no reference to US policy under the Trump administration which had placed obstacles on the Chinese giant, under the pretext that Huawei poses a threat to US privacy and national security. , the multinational insists the sale is due to supply chain problems that have forced Huawei to part with its low-cost smartphone unit.
Since its inception in 2013, Honor has focused on the youth market, offering low and mid-range mobile phones. Each year, according to Huawei, the Chinese brand supplies a total of 70 million devices.
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