After several weeks of speculation regarding a possible sale, Huawei has apparently reached an agreement to separate from its Honor brand. According to a recent report published today by Reuters, the challenged technology company will transfer ownership of its more affordable product line to a group of purchasers consisting of the Shenzhen city government and Digital China, a mobile phone distributor.

The report, based on information from “sources with knowledge of the situation,” indicates a valuation of $15.2 billion for the Honor division. The new leadership of Honor is expected to retain a significant portion of the brand’s workforce – approximately 7,000 employees, including management – and intends to initiate an initial public offering within approximately three years. The Honor brand has primarily concentrated on competitively priced devices, achieving sales in China, Europe, and the United States. This transaction will likely allow Huawei to concentrate its resources on premium products marketed under its primary brand.

Although this transaction has been the subject of discussion for a while, its apparent finalization coincides with the outcome of the U.S. presidential election and Joe Biden’s victory. Huawei’s decision to proceed with this entirely cash-based deal suggests the company does not anticipate an immediate improvement in its global standing with a change in U.S. leadership.

This development follows continued challenges stemming from U.S. trade restrictions. Huawei’s restricted access to technologies from companies such as Google has significantly impacted the performance of the world’s second-largest smartphone manufacturer. While the company has continued to achieve reasonable sales figures within its home market of China, even those numbers have declined due to these ongoing difficulties.