Demerger

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]

References

^^a ^bBryer, Lanning G. (2002).Intellectual property assets in mergers and acquisitions.John Wiley and Sons. pp. 12.2–12.3.ISBN 978-0-471-41437-7.
^Krishna, K.L.; Uma Kapila (2009).Readings in Indian Agriculture and Industry.Academic Foundation. p. 599.ISBN 978-81-7188-734-7.

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[Bryer-1] Bryer, Lanning G. (2002).Intellectual property assets in mergers and acquisitions.John Wiley and Sons. pp. 12.2–12.3.ISBN 978-0-471-41437-7.

[Krishna-2] Krishna, K.L.; Uma Kapila (2009).Readings in Indian Agriculture and Industry.Academic Foundation. p. 599.ISBN 978-81-7188-734-7.

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See also

References