Technology

Huawei sells Honor for almost 13 billion euros

After some thought, it’s time for something concrete. According to Reuters, Huawei will sell its Honor subsidiary for 100,000 billion yuan. The sale would be with Digital China and the Chinese city government of Shenzhen.

The transaction would only be in cash. This would affect almost all of Honor’s assets, including brand, research and development, and supply chain management. Huawei could announce this honorary sale on Sunday.

Digital China, currently Honor’s main distributor, would become one of the two main shareholders in the Honor Terminal company with a nearly 15% stake. The Honor Terminal was launched in April and is still 100% owned by Huawei to this day.

After the sale, Honor plans to keep most of its management team and more than 7,000 employees. The group also aims to become a public company within three years.

Honor was founded in 2013. Although the group owns Huawei, it works largely independently of its parent company. But Huawei has been struggling with US restrictions for a few quarters. The United States accuses him of spying on behalf of China. They therefore prohibited American groups from working with Huawei. This affects both the hardware and the software (Android).