- demerger
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The distribution of subsidiary rights to shareholders of the parent company, with no surrender of shares. A spin-off represents a form of divestiture resulting in an independent company. Euroclear Clearing and Settlement glossary
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to make one part of a large company into a separate company:• A plan was announced yesterday to demerge its North American operations.
— demerger noun [countable] :• Merchant bankers proposed a demerger of the company into two separate businesses.
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When a company hives off some of its units into a wholly-owned separate concern, which may also be listed on a stock exchange. This can occur following a number of acquisitions of a similar nature that may diverge from a company's mainstream operations.* * *
demerger UK US (also de-merger) /ˌdiːˈmɜːdʒər/ noun [C] MANAGEMENT► a situation in which a company is divided into two or more parts, or in which a company is separated from a larger company: a demerger from sth »The demerger of the restaurant from the hotel business will create two focused companies each with very exciting prospects.
Financial and business terms. 2012.