Divestiture (Noun)
Meaning 1
The sale by a company of a product line or a subsidiary or a division.
Classification
Nouns denoting acts or actions.
Examples
- The company's decision to undergo divestiture of its underperforming subsidiary was seen as a strategic move to free up resources.
- As part of the restructuring plan, the corporation announced the divestiture of its struggling product line to a rival firm.
- The divestiture of the company's manufacturing division marked the end of its involvement in the industry.
- The conglomerate's divestiture of its stake in the joint venture was motivated by a desire to focus on its core businesses.
- The divestiture of the company's troubled subsidiary allowed it to eliminate significant financial liabilities.
Related Words
Meaning 2
An order to an offending party to rid itself of property; it has the purpose of depriving the defendant of the gains of wrongful behavior; "the court found divestiture to be necessary in preventing a monopoly".
Classification
Nouns denoting communicative processes and contents.
Examples
- The court ordered the company to undergo divestiture of its recently acquired subsidiary to prevent a monopoly in the market.
- As part of the settlement, the corporation was required to undergo divestiture of its shares in the rival company.
- The government agency imposed divestiture on the conglomerate, forcing it to sell off several of its key assets.
- The judge ruled that divestiture was necessary to prevent the defendant from profiting from its illegal business practices.
- The regulatory body ordered the company to undergo divestiture of its stake in the joint venture to comply with antitrust laws.