Honor is no longer a subsidiary of the Huawei Consumer Business Group.The news is finally confirmed via a joint statement from over 30 agents and dealers of the Honor brand. The consumer electronics company which was founded in 2011 as an online-only brand has now been sold to a new owner called Zhixin New Information Technology Co. Ltd.
The statement says Zhixin New Information Technology will “acquire all business assets related to the Honor Brand”, and “once the acquisition is complete, Huawei will not hold any shares in the new Honor company”. Details about how much the acquisition cost was not revealed
According to the joint statement, the company was sold in a bid to keep the company alive after the US imposed sanctions restricting the business of Huawei and its companies. The new deal means that Honor is likely to resume its business in the US as Huawei will not hold any shares in the new Honor company after the sale.
The decision to sell the Honor brand comes as a necessary one to save the brand from the woes which have plagued its former parent company since it was placed on the US Commerce Department’s entity list.