demerger

Definition

The act of splitting off a part of an existing company to become a new company, which operates completely separate from the original company. Shareholders of the original company are usually given an equivalent stake of ownership in the new company. A demerger is often done to help each of the segments operate more smoothly, as they can now focus on a more specific task. opposite of merger.

Use demerger in a sentence

You may want to try and take on a demerger if you think that will be the best way for your business to grow.

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If you do not like the way your company is heading you may need to go for a demerger and branch off on your own.

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The demerger created a new company that functioned in a similar industry while still helping the operations of the parent company.

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dematerialization introduction