Huawei will sell the Honor's subsidiary for $ 15.2 billion

The Chinese company Huawei has agreed to sell a subsidiary of Honor smartphones for $ 15.2 billion. The buyer of the company will be a consortium led by Digital China (the main distributor of Honor devices) and the Government of the city of Shenzhen, in which the headquarters of Huawei is located. It is reported by Reuters with reference to sources familiar with the negotiations.

Rumors about Huawei plans to sell Honor appeared in mid -October, but then it was reported that several buyers were applying for a subsidiary, and the deal was estimated at $ 3.7 billion. The decision to sell the Honor brand in Huawei was made by the sanctions imposed by the US authorities against Huawei. These restrictions seriously complicated the production of smartphones of the company and deprived Huawei, the opportunity to install Google services on their Android devices.

According to Reuters, Huawei will officially announce the Honor sale deal this Sunday, November 15. It is assumed that the company will sell almost all the assets related to the Honor brand, and the consortium will pay the purchase that the Digital China will receive in the form of bank loans. After the sale, it is planned that Honor will retain most of his managerial team and more than 7,000 employees, and also hold an IPO over the next three years, writes Durov's Code .

Representatives of Huawei, Honor, Digital China and Shanzhen governments did not respond to journalists about comments. Honor refused to comment on the information about the transaction.

Recall that the US authorities have repeatedly accused Huawei of espionage of the interests of Bekin with the help of bacdors in equipment. Representatives of the Chinese company deny these accusations. At the same time, according to one of the sources of Reuters, the transaction means that Huawei does not have hopes for the weakening of sanctions in connection with the election of Joe Biden to the post of US president.