By David Kirton
SHENZHEN, China (Reuters) – Huawei Technologies Co Ltd [HWT.UL] is selling its budget brand smartphone unit Honor to a consortium of over 30 agents and dealers in a bid to keep it alive, the company and the consortium said on Tuesday.
The deal comes after U.S. government sanctions have restricted supplies to the Chinese company on grounds the firm is a national security threat – which it denies.
The consortium issued a statement on Tuesday announcing the purchase, which will be made via a new company, Shenzhen Zhixin New Information Technology.
Huawei will not hold any shares in the new Honor company after the sale, the statement said.
In Huawei’s statement, the company said its consumer business has been under “tremendous pressure” due to the “persistent unavailability of technical elements” for its phone business.
“This move has been made by Honor’s industry chain to ensure its own