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divestiture Definition

di·vesti·ture (--ə c̸hər)

noun

a divesting or being divested

divestiture Finance Definition
The sale of part of a company or an important company asset, either by spinning off a company’s unit, selling a unit to another company or group of employees, or liquidating it. The term also refers to a company’s sale of the stock of another company that was purchased for investment purposes.
divestiture Usage Examples

Preposition: of

  • asset: T hird, the British model of PSP via the divestiture of assets is not being followed anywhere else in the world.
  • partner: Divestiture of a limited partner 's interest in the partnership requires consent of all members.

Modifies a noun

  • remedy: The Competition Commission has published guidelines on the Application of divestiture remedies in merger inquiries.