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Divestiture: meaning, definitions and examples

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divestiture

 

[ dɪˈvɛstɪtʃər ]

Noun
Context #1 | Noun

business

The action or process of selling off subsidiary business interests or investments.

Synonyms

disinvestment, sell-off, spin-off.

Which Synonym Should You Choose?

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Word Description / Examples
divestiture

Commonly used in legal or business jargon when a company divests itself of an asset. It often involves regulatory or strategic considerations.

  • The regulator ordered the divestiture of the subsidiary to prevent a monopoly.
  • The company announced a divestiture of its non-core business units to focus on its primary operations.
disinvestment

Used to describe the withdrawal of capital investment in a company, industry, or country, often for ethical, political, or economic reasons.

  • There has been significant disinvestment in coal industries due to environmental concerns.
  • The government is concerned about the ongoing disinvestment in the region.
sell-off

Informal, commonly used to describe the act of selling large volumes of assets, stocks, or business units, often quickly and possibly due to urgent financial needs or strategic shifts.

  • The sudden sell-off of shares caused the stock market to plunge.
  • In response to the crisis, the company initiated a massive sell-off of its assets.
spin-off

Refers to the creation of an independent company through the sale or distribution of new shares, often when a parent company separates part of its operations to create a new entity.

  • The tech giant announced a spin-off of its cloud services division.
  • After the spin-off, the new company will operate independently from its former parent.

Examples of usage

  • The divestiture of the company's non-core assets helped improve its financial stability.
  • After the divestiture, the company focused on its core business operations.
  • The divestiture was necessary to streamline the company's operations.
  • Divestiture can be a strategic move to enhance a company's profitability.
  • Successful divestiture can lead to a more efficient allocation of resources.

Translations

Translations of the word "divestiture" in other languages:

🇵🇹 alienação

🇮🇳 विलेपन

🇩🇪 Veräußerung

🇮🇩 divestasi

🇺🇦 відчуження

🇵🇱 zbycie

🇯🇵 撤退

🇫🇷 cession

🇪🇸 desinversión

🇹🇷 elden çıkarma

🇰🇷 매각

🇸🇦 تصرف

🇨🇿 odprodej

🇸🇰 odpredaj

🇨🇳 撤资

🇸🇮 odprodaja

🇮🇸 sölu

🇰🇿 бөліп алу

🇬🇪 გაყიდვა

🇦🇿 satış

🇲🇽 desinversión

Etymology

The word 'divestiture' originated from the Latin word 'divestire', which means 'to undress' or 'to strip off'. In the business context, 'divestiture' refers to the process of selling off assets or business interests. The practice of divestiture has been used by companies to improve financial performance, refocus on core operations, or comply with regulatory requirements. It gained popularity in the 20th century as companies sought to rationalize their portfolios and optimize resource allocation.

Word Frequency Rank

Positioned at #22,419, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.