Demerger


Demerger

Demerger is a form of corporate restructuring in which the an entity's business operations are segregated into one or more components.[1] It is the converse of a merger or acquisition.

A demerger can take place through a spin out by distributed or transferring the shares in a subsidiary holding the business to company shareholders carrying out the demerger. The demerger can also occur by transferring the relevant business to a new company or business to which then that company's shareholders are issued shares of.[1]

Demergers can be undertaken for various business and non-business reasons, such as government intervention, by way of anti-trust law, or through decartelization.[2]

References

  1. ^ a b Bryer, Lanning G. (2002). "Intellectual property assets in mergers and acquisitions". John Wiley and Sons. pp. 12.2–12.3. ISBN 9780471414377. 
  2. ^ Krishna, K.L.; Uma Kapila (2009). Readings in Indian Agriculture and Industry. Academic Foundation. p. 599. ISBN 9788171887347. 

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Look at other dictionaries:

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  • demerger — UK [diːˈmɜː(r)dʒə(r)] / US [dɪˈmɜrdʒər] noun [countable] Word forms demerger : singular demerger plural demergers business British a demerger takes place when one company separates from a larger group to which it belonged …   English dictionary

  • démerger — (dé mèr jé. Le g prend un e devant a et o) v. n. Terme de marine. Éprouver un démergement. ÉTYMOLOGIE    Dé.... préfixe, et le verbe latin mergere, plonger. SUPPLÉMENT AU DICTIONNAIRE DÉMERGER. Ajoutez : 2°   Tirer d une eau venue par inondation …   Dictionnaire de la Langue Française d'Émile Littré

  • demerger — de|merg|er [ di mɜrdʒər ] noun count BRITISH BUSINESS a demerger takes place when one company separates from a larger group to which it belonged …   Usage of the words and phrases in modern English

  • demerger — [[t]di͟ːmɜ͟ː(r)ʤə(r)[/t]] demergers N COUNT A demerger is the separation of a large company into several smaller companies. [BRIT] Ant: merger …   English dictionary

  • demerger — n. * * * …   Universalium

  • demerger — noun a) A partial or complete reversal of a previous merger b) The disposal of subsidiaries or divisions of a company …   Wiktionary

  • demerger — n. To sell off subsidiaries, divisions, or other corporate businesses. Example Citation: Siemens, Germany s largest electronics group, plans a big shake up of its businesses, including disposals and demergers, in an effort to improve its… …   New words

  • demerger — n. (British) merger between companies (two or more) that dissolved; separation of one company from a larger group or from a larger company …   English contemporary dictionary


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