Definition of Divestiture

What is a "divestiture"? What is the definition of the term "divestiture"?

For off, let's define the word "divest".

To "divest", according to the dictionary, is to "sell off" or "otherwise dispose of".

Divestiture DefinitionAccording to the dictionary, a "divestiture" is the "sale, liquidation or spinoff of a corporation division or subsidiary".

A "divestiture" can occur in different ways. For instance, a company might sell one of their divisions to another company after deciding that the division no longer fits in with their future plans. Or, a "divestiture" might occur if a company simply decides that they are going to close a division because it is no longer profitable.

So, a "divestiture" occurs when a corporation removes a corporate division or subsidiary from their books.

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