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divestiture

[dih-ves-ti-cher]

divestiture Definition

  • 1the act of selling or disposing of a business unit, subsidiary, or asset
  • 2the act of stripping oneself of something, such as property, power, or rights

Using divestiture: Examples

Take a moment to familiarize yourself with how "divestiture" can be used in various situations through the following examples!

  • Example

    The company announced the divestiture of its non-core businesses.

  • Example

    The divestiture of the subsidiary was necessary to raise capital.

  • Example

    The divestiture of his shares in the company was part of the settlement agreement.

divestiture Synonyms and Antonyms

Antonyms for divestiture

Phrases with divestiture

  • the sale or disposal of a business unit or asset that is required by law or regulation

    Example

    The company was ordered to make a forced divestiture of one of its subsidiaries.

  • a legal arrangement in which a third party holds and manages assets that are being divested until they can be sold or transferred to another owner

    Example

    The company established a divestiture trust to manage the sale of its subsidiary.

  • the sale or disposal of a business unit or asset that is not required by law or regulation, but is done voluntarily for strategic or financial reasons

    Example

    The company made a voluntary divestiture of its underperforming division.

Origins of divestiture

from Latin 'divestire', meaning 'to undress'

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Summary: divestiture in Brief

The term 'divestiture' [dih-ves-ti-cher] refers to the act of selling or disposing of a business unit, subsidiary, or asset. It can also mean the act of stripping oneself of something, such as property, power, or rights. Examples of divestiture include the sale of non-core businesses, shares, or subsidiaries. The term extends into phrases like 'forced divestiture,' which is required by law or regulation, and 'voluntary divestiture,' which is done voluntarily for strategic or financial reasons.