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Huawei sells Honor to Chinese firm after US cuts supply of chips

Huawei will no longer hold any shares in Honor after the transaction

Topics
Huawei Technologies | Honor | Huawei chipset

Bloomberg 

Photo: Reuters
Photo: Reuters

sold its smartphone business to a Chinese government-backed consortium for an undisclosed amount, hiving off the entry-level devices arm after the Trump administration cut off its access to American technology.

The consortium was formed by the Shenzhen Smart City Technology Development Group and more than 30 of Honor’s partners, agents and dealers, from private giants such as Suning.com to government-affiliated entities such as a branch of China Postal and Telecommunications.

Huawei will no longer hold any shares in after the transaction. The deal could help augment a brand that’s gained popularity among younger budget-conscious users in recent years and made headway in overseas markets like Europe. It’s unclear if the spin-off will lead to a resumption of American chip supply to its new owners. The sale illustrates the uneven impact of US sanctions on China’s largest technology firm, whose consumer business is ailing.

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First Published: Wed, November 18 2020. 00:07 IST
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