noun
- the separation of a company into two or more independent companies, typically by distributing shares of subsidiary companies to existing shareholders
Usage: business; finance
Examples
- The board announced several demergers to focus on core business operations.
- Shareholders will receive stock in three separate companies following the demergers.
- The conglomerate’s demergers created more specialized, competitive firms.
- Regulatory approval is required before the demergers can be completed.
- The demergers resulted in improved market valuations for each division.
- Investors welcomed the demergers as a way to unlock shareholder value.