Divestiture
/dɪˈvɛstɪʧər/
Definitions
- (n.) The act of a company selling, disposing of, or relinquishing assets or subsidiaries, often to comply with regulatory requirements or to refocus business operations.
The court ordered the divestiture of the company's competing division to restore market competition.
- (n.) A court-ordered or voluntary separation of certain assets or business units from a parent company to prevent monopolistic practices.
The divestiture was mandated under antitrust laws to dismantle the monopoly.
Related terms
See also
Commentary
Divestiture is often used in antitrust law to describe a remedy requiring firms to sell parts of their business; clarity about whether it is voluntary or mandated is important in drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.