See spin-off / unbunding Euroclear Clearing and Settlement glossary
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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demerge de‧merge [ˌdiːˈmɜːdʒ ǁ -ˈmɜːrdʒ] verb [intransitive, transitive] COMMERCE
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.

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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.

Compare MERGER(Cf. ↑merger)

Financial and business terms. 2012.

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Look at other dictionaries:

  • 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… …   Wikipedia

  • demerger — A procedure by which part of the business of a company or subsidiary in a group of companies is transferred directly to shareholders (or a class of them) by a distribution thereby creating separate companies in common ownership. The procedure is… …   Law dictionary

  • 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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