In this news, we discuss the Exclusive: Huawei in talks to divest parts of Honor smartphone business, sources say.
HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd 000034.SZ and other suitors to sell parts of its Honor smartphone unit in a deal that could bring in up to 25 billion yuan ($ 3.7 billion). with knowledge of the matter said.
Embattled Huawei is resetting its priorities in the face of US sanctions and will focus on its high-end Huawei phones rather than the Honor brand which caters to young people and concerned budgets, they said.
Assets for sale have not yet been finalized, but could include the Honor brand, research and development capabilities, and associated supply chain management activities, two people said.
The deal may be an all-cash sale and could end up being smaller, valued between 15 billion yuan and 25 billion yuan, one of the people said.
Digital China, the main distributor of Honor phones, has become the frontrunner, but other potential buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp 1810.HK, the sources said.
The sources declined to be identified as the discussions were confidential.
Huawei, Digital China and Xiaomi did not immediately respond to requests for comment. TCL declined to comment.
Report by Julie Zhu in Hong Kong; Additional reporting by David Kirton in Shenzhen; Editing by Sumeet Chatterjee and Edwina Gibbs
Original © Thomson Reuters