noun
- the separation of a company into two or more independent companies, typically by distributing shares of subsidiary companies to existing shareholders
Usage: business; finance
Examples
- The telecommunications giant announced a demerger of its mobile division.
- Shareholders will receive stock in both companies following the demerger.
- The demerger was designed to unlock shareholder value in each business unit.
- Regulatory approval is required before the demerger can proceed.
- The company’s demerger created two focused, independent entities.
- Investors welcomed news of the planned demerger.