Huawei Forced To Sell Subsidiary Honor Amid US Embargo
The US sanctions against Huawei have again massive consequences: The Company is apparently negotiating with a number of interested parties about the sale of its subsidiary brand Honor. Honor is also known in Germany as a provider of mostly relatively cheap smartphones.
As reported by the Reuters news, citing sources close to Huawei, negotiations are currently underway on the sale of Honor to a number of possible new owners. The company Digital China, which has been the main distributor of the Honor devices so far, is currently said to be the most promising candidate.
TCL and Xiaomi should also be interested
In addition to Digital China, other, much better-known companies are also said to have expressed their interest. This also supposedly includes the competitors Xiaomi and TCL (Alcatel), although the details of the deal are currently unclear. Allegedly, Huawei wants to generate around 25 billion yuan from the sale, which would correspond to about 3.16 billion euros. In addition to the Honor brand, the development and research departments as well as the sales business are also allegedly for sale. Due to the limited range and attractiveness of the Honor brand, the scope of the business could be even smaller, so that the purchase price drops.
Selling Honor would make the brand-independent from Huawei and thus ensure its survival. In the event of a sale, the previous Huawei subsidiary would no longer be affected by the massive US sanctions. Honor recently accounted for around a quarter of all smartphone sales by Huawei. The Chinese group can currently hardly develop new smartphones because the US trade ban affects a large number of suppliers who are no longer allowed to supply the manufacturer with components and other parts.
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