The new owner of the Honor brand was born from a consortium of over 30 agents and dealers of the Honor brand and the Shenzhen Smart City Development Group Co. Ltd according to a joint statement released confirming the acquisition.
Report has it that the Shenzhen Smart City Development Group which is also a subsidiary of the Shenzhen SASAC holds about 98.6% of the shares while the Shenzhen’s state-owned Assets Cooperative Development Private Equity Partnership holds the remaining 1.4% shares.
According to statement gotten from the Zhixin New Information Technology, the company is said to “acquire all business assets related to the Honor Brand” and “once the acquisition is complete, Huawei will not hold any share in the new Honor company.”
Details about how much the acquisition cost was not revealed but earlier reports put the figure at about $15 billion. It is the best solution to protect the interests of Honor’s consumers, channel sellers, suppliers, partners, and employees.
The major reason prompting the sales of Honor is to save the company from suffering the same fate which Huawei is currently in due to the bans placed on the company by the US Commerce Department as this also extend to every other businesses owned by Huawei with Honor also suffering that same fate as its former parent company.
The joint statement also revealed that the change in ownership will not affect Honor’s development direction or the stability of its executives and talent teams. The consortium also states that they will follow market rules and compete fairly for the same business opportunities as other agents and dealers.
Although it’s yet unknown if the sales will mean that Huawei will have to retrieve all of its software properties from current or future Honor devices especially the EMUI software as well as other intellectual properties considering the fact that Honor utilizes almost everything branded by Huawei including charging brick, headphones and so forth.
The move could also save Honor from the perils of being ousted from the western market completely while becoming a major smartphone and gadget brands rather than hiding under the shadows of Huawei.