Huawei’s car business valued at $16 billion in share sale

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Chinese tech giant Huawei’s automotive business unit has been valued at around RMB 115 billion ($16 billion), after it struck a deal to sell a 10% stake to Changan Automobile for RMB 11.5 billion, the two companies announced on Tuesday. Why it matters: Changan shares fell by 4.3% on Tuesday as the deal will see it own a smaller than expected stake in Huawei’s car unit. Huawei will retain its control of the business and pursue a diversified ownership structure to deepen its links with multiple automakers. Huawei in 2020 co-established Avatr with Changan and Chinese battery maker CATL by providing technological know-how without direct investment in the luxury electric vehicle brand. READ MORE: Huawei creates separate car division, open to Changan and other outside investors