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Huawei to sell Honor to Shenzhen government for $15 bn

Huawei Honor_IFM_Image
The deal will allow Huawei to focus on high-end handsets and corporate-oriented business

China-based tech and telecom giant Huawei is in talks to sell its mobile manufacturing sub-brand to a consortium led by Digital China and the Shenzhen government, media reports said. The deal will help Huawei focus on high-end handsets and corporate-oriented business.

After the completion of the deal, Digital China, the main distributor of Honor, will become a top-two shareholder of Honor Terminal with a near-15 percent stake. It is reported that Honor will retain most of its management team and 7,000-plus workforce and go public in the next three years.

Huawei has been flagged by the former US administration on suspicion of espionage. With that, the company saw a decline in growth in many US-allied nations . More recently, the UK has restricted Huawei from developing the 5G infrastructure in the country.

The US is also pressuring Brazil to flag Huawei and restrict the telecom giant from developing a 5G infrastructure in the country.  The US Trade Representative Robert Lighthizer at an event hosted by the US Chamber of Commerce, said“I would say clearly there is a China element in everything that all of us do. China has made a very significant move in Brazil. They’re Brazil’s biggest trading partner, so it’s something that we’re concerned about.”

Brazilian president Jair Bolsonaro is a close admirer of former US President Donald Trump. But Joe Biden’s presidential win is anticipated to see a change in the coming years.

Earlier this year, it was reported  that Huawei is planning to develop a 5G ecosystem innovation centre at the Digital Economy Promotion Agency’s (DEPA) headquarters in Thailand. Huawei will invest around ฿475 million for the development of the 5G ecosystem innovation centre in Thailand.

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