After weeks of rumors, Huawei confirmed it’s promoting its funds cellphone unit Honor to a consortium of corporations, together with government-backed corporations and Honor’s distribution companions, in accordance with a joint statement launched Tuesday morning in a neighborhood Shenzhen paper.
“This acquisition represents a market-driven funding made to save lots of Honor’s provide chain. It’s the finest answer to guard the pursuits of Honor’s shoppers, channel sellers, suppliers, companions, and staff,” mentioned the assertion signed by the 40 corporations.
Huawei misplaced main chip and software program suppliers after the U.S. authorities slapped commerce sanctions on the telecoms tools and smartphone big. A spin-out can in idea exempt Honor from the availability chain restrictions which have struck Huawei laborious.
Within the meantime, nobody within the consortium poses an existential menace to Huawei’s market place. That leaves sufficient leeway for Huawei if it ever needs to purchase Honor again from the group of government-backed corporations and cellphone sellers and brokers.
The announcement didn’t put a price ticket on the acquisition, although Reuters beforehand reported it may price 100 billion yuan ($15 billion).
That is an updating story.