Huawei have officially sold off the HONOR brand and will not hold any shares
Previously, we wrote a piece of news that Huawei could have sold off their HONOR brand and the announcement could be made on 20 November 2020. Looks like we don't need to wait any longer because it's now official as reported by Reuters, XDA-Developers and Shenzhen Special Zone Daily (a Chinese newspaper agency).
So here's what will happen - Over 40 companies that were involved in the deal will form a new company known as Shenzhen Zhixin New Information Technology. This is so that the transaction can proceed and once the purchase is completed, Huawei won't have any shares at all with HONOR. The transaction involves HONOR's Research and Development centres, supply chain management, every HONOR employees and other related assets.
As you can see from the newspaper image there, the new company formation by the agents and dealers were a "market-driven investment made to save HONOR’s industry chain". So when the final transaction goes through, there won't be any impact nor effect on HONOR and they will continue their business as usual. Although, it's not known if they will continue using Huawei's Hisilicon Kirin chipsets and other related technology for their products.
There was also no report on how much was the transaction but it was rumoured to be $15.2 billion. In addition, there's also no word if the new US President Joe Biden would lift the ban on Huawei or not. We will continue to monitor the situation so stay tuned for more trending tech news at TechNave.com.