Huawei closed in on a deal to sell the assets related to its youth-focused device range Honor to a group led by handset distributor Digital China and the Shenzhen government for CNY100 billion ($15.1 billion), Reuters reported.

The deal, which could be announced by 15 November, reportedly will cover the Honor brand, R&D capabilities and supply chain management.

Digital China, a distributor of Honor devices, would take nearly a 15 per cent stake following the sale, with at least three investment companies backed by the Shenzhen government each owning a 10 per cent to 15 per cent interest, Reuters said.

Huawei declined to comment on the report.

In mid-October, the news agency reported the Chinese mobile giant opened talks with several companies about offloading the Honor assets.

The sale reportedly is an attempt to refocus its smartphone business on higher-end models currently supplied under its core Huawei brand. While the new Chinese owners would not be subject to a ban imposed on Huawei by the US on sourcing some components, they would likely still be caught-up in the ongoing technology trade war.

Faced with new US trade sanctions, Huawei’s global smartphone shipments in Q3 declined 23 per cent year-on-year to 51.7 million, with Honor models accounting for about a quarter of the total, data from Canalys showed.