The new owner of the Honor brand was formed by a consortium of more than 30 agents and dealers of the Honor brand and the Shenzhen Smart City Development Group Co
Honor is no longer a subsidiary of Huawei Consumer Business Group. A consumer electronics company founded in 2011 as an Internet-only trademark, sold to new owner Zhixin New Information Technology Co. Ltd.
Huawei announced the sale of Honor
According to the released joint statement confirming the acquisition, the new owner of the Honor brand was formed by a consortium of more than 30 agents and dealers of the Honor brand and the Shenzhen Smart City Development Group Co.
It is reported that the Shenzhen Smart City Development Group, which is a subsidiary of Shenzhen SASAC, owns 98.6% of the shares, while the Shenzhen State Private Equity Development Partnership for Asset Development holds 1.4%.
The statement said that Zhixin New Information Technology “will acquire all business assets associated with the Honor brand,” and “upon completion of the acquisition, Huawei will not own shares in the new company Honor.” Details on how much the acquisition costs were not disclosed, but earlier reports said it was about $ 15 billion.
The decision to sell the Honor brand was necessary to save the brand from the ills that have plagued its former parent company since it was included on the U.S. Department of Commerce’s banned list.
The joint statement also revealed that the change of ownership will not impact Honor’s direction or the performance of executives and talented teams. The consortium also states that it will follow the rules of the market and compete fairly for the same business opportunities as other agents and dealers.
