Huawei negotiates the sale of Honor so that its mobile sub-brand avoids the veto of the US, according to Reuters

Huawei is in negotiations to sell part of Honor’s business, as reported by Reuters. The main interested party would be Digital China Group Co Ltd, the main distributor of Honor phones in China and the agreement could reach the figure of between 15 and 25 billion yuan, about 3,200 million euros To the change.

Reuters does not specify which sections of Honor would be for sale, but names both Honor’s own brand, a division dedicated to smartphones and focused on attracting young audiences and online sales, as well as the supply chain and technology.

A sale to bypass the US veto

The objective behind this movement would be none other than make Honor independent from Huawei and thus try to avoid the veto of the Trump administration. This maneuver is not the first time it has appeared on the table. Analyst Ming-Chi Kuo explained that “if Honor is independent from Huawei, its sourcing will no longer be subject to the US ban on Huawei. This will help Honor’s smartphone business and suppliers.”

This move would allow, in case the United States did not make changes, Honor be able to buy components that are currently banned for being associated with Huawei. The information was initially published by the analyst on ITHome and later deleted. The statements can still be accessed via Google Caché and have now been confirmed by a Reuters source, who indicates that negotiations are taking place.

Besides Digital China, other potential buyers that are ringing up to acquire part of Honor’s business are other mobile manufacturers such as TCL or Xiaomi, although neither of the two companies has officially shown their interest in making this purchase.

According to data from Canalys, Honor represents 26% of the total phones shipped by Huawei, almost 15 million units shipped during the second quarter of the year. With the sale of this division, Huawei would also obtain a relevant economic injection.

In response to Engadget, from Honor they explain that they currently have no comments to offer in this regard.

In Engadget | “We are going to continue in this market yes or yes”, interview with Pablo Wang (Consumer Director of Huawei Spain)