Against the backdrop of the electoral cycle, the trade war between the United States and China continues to rage, with Huawei taking some of the most damaging mortars to date. He is unable to import anything even remotely of an American nature and has had to make painful adjustments to his operations. One change believed to fall from that pivot was a potential sale of its subsidiary Honor. Now we learn more details about the multibillion dollar deal that could arrive as early as this week.

Reuters reports from sources that the collaborative offer of 100 billion yuan or US $ 15 billion in cash comes from three or more investment companies funded in part by the Shenzhen municipal government – Huawei’s home base – and Digital China, Honor’s main distributor. The sale includes more than 7,000 employees and facilities for research, development and supply chain. An agreement could be announced as early as Sunday.

Although it has produced and sold phones for international sale under its own name, Huawei’s main reach in Western markets has been through Honor with premium hardware offered at competitive prices. However, as the Trump administration began sanctioning the company from US imports in August, sales plummeted on all fronts. Even though Biden’s next presidency is seen as bringing a friendlier trade agenda with China, defense and intelligence agencies may insist that Huawei’s blockade remain to protect the United States from a national security threat. .

Earlier reports in October floated initial valuations between $ 2 billion and $ 4 billion, meaning there appears to be a great urgency to push the lever.

For Huawei, ceding Honor to a suitor would give it leeway to focus on its high-end businesses and mainstream businesses. For Honor, it is hoped that a change in ownership will drop it under the DC radar and allow the Chinese brand to sell new phones with updated versions of the popular Android operating system instead of relying on a manufactured substitute. in a hurry to the whole world. markets in which it has maintained a presence.