Huawei, in talks to get rid of part of the Honor mobile business

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Huawei, in talks to get rid of part of the Honor mobile business




FILE PHOTO: The Huawei logo at the IFA consumer technology fair in Berlin


© AFP / Michel TANTUSSI
FILE PHOTO: The Huawei logo at the IFA consumer technology fair in Berlin


Por Julie Zhu

HONG KONG, Oct 14 (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd and other groups to sell parts of its Honor smartphone unit in a deal that could fetch 25 billion yuan (3.7 billion yuan). dollars), said people with knowledge of the matter.

Huawei is reconsidering its priorities in the face of US sanctions and will focus on the division of its high-end phones instead of the Honor brand, which is aimed at the young population and the tightest budgets, they said.

The list of assets to be sold has not yet been finalized but could include the Honor brand, R&D divisions and supply chain management, two of the sources said.

The deal could be a cash sale and could end up for less than expected, worth between 15 and 25 billion yuan, one of the people said.

Digital China, the main distributor of Honor phones, has emerged as the leader, but other potential buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp, the sources said.

They declined to be identified as the conversations are confidential.

Huawei, Digital China and Xiaomi did not immediately respond to requests for comment. TCL declined to comment.

($ 1 = 6.7389 Chinese yuan)

(Information from Julie Zhu in Hong Kong; additional information from David Kirton in Shenzhen; edited by Sumeet Chatterjee and Edwina Gibbs; translated by Michael Susin at the Gdansk newsroom)

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