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
Synonyms for divestiture
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'
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.
