Demerger
This articleneeds additional citations forverification.(February 2021) |
Ademergeris a form of corporate restructuring in which the entity'sbusiness operationsare segregated into one or more components.[1]It is the converse of amerger or acquisition.
A demerger can take place through aspin-offby 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]
In contrast,divestmentcan also "undo" a merger or acquisition, but the assets are sold off rather than retained under a renamed corporate entity.
Demergers can be undertaken for various business and non-business reasons, such asgovernment intervention,by way ofantitrustlaw, or throughdecartelization.[2]
See also
[edit]References
[edit]- ^abBryer, Lanning G. (2002).Intellectual property assets in mergers and acquisitions.John Wiley and Sons. pp. 12.2–12.3.ISBN978-0-471-41437-7.
- ^Krishna, K.L.; Uma Kapila (2009).Readings in Indian Agriculture and Industry.Academic Foundation. p. 599.ISBN978-81-7188-734-7.