Mobile phone maker Xiaomi has sold its handset business in India for $5 million, bringing its total revenue in the country to $100 million.
The company, whose phones are sold in over 20 countries, said the deal was valued at $1.1 billion, which includes the acquisition of an 80 percent stake in a rival handset manufacturer, Oppo, worth $500 million.
Xiaomi also agreed to pay $1 million to settle antitrust charges in India, and a separate $1 billion in cash and other assets.
Xinhui Zhou, Xiaomi’s chairman, said in a statement that the transaction “is a milestone in the evolution of the brand, as it brings the first ever mobile phone holder in India to the global market.
We will continue to support our loyal customers in India with the most popular Xiaomi smartphones.”
India has become Xiaomi’s largest market, with more than $5 billion in revenue last year.
It accounted for $3.5 billion of the company’s $7.9 billion in global revenue last quarter, according to estimates from Gartner.
Xianhui said the transaction, which is expected to close by the end of 2019, will help the company expand its global presence in India.
The deal comes as Xiaomi is expanding its footprint in China and India as it seeks to compete against rivals such as Oppo and Huawei.
Xie’s first India acquisition was a joint venture with Bharti Airtel, which has more than 40 million customers in the two markets.
The Chinese company said it had signed a long-term agreement with BH Retail, which owns the outlet chain, to expand its reach in the Indian market.
The India deal, however, is likely to be overshadowed by a similar deal in the United States, where Apple has been acquiring several companies in the smartphone business.
In August, Apple said it would acquire a majority stake in rival Android maker Qualcomm.
Last month, Apple and Qualcomm said they would be combining their businesses to create a global wireless carrier, which would include the two companies’ own smartphones.