divestiture
noun
, -chər, də-, chiefly Southern -t(y)u̇(ə)r\
Definition of divestiture
Examples of divestiture in a Sentence
Recent Examples on the Web
The companies would aim to close the deal within six months and expect to make no divestitures, the person said. — Jonathan Roeder And Craig Giammona / Bloomberg, Time, "Tobacco Giants Philip Morris and Altria in Talks to Merge 10 Years After Split," 27 Aug. 2019 Such divestitures had been expected by analysts and haven't been viewed as serious impediments to the deal, partly because the profits on the plans are limited. — Sharon Terlep, WSJ, "Justice Department Nearing Antitrust Approval of Health Mergers Combining CVS-Aetna, Cigna-Express Scripts," 5 Sep. 2018 With the Tribune transaction and related divestitures Sinclair would grow to 215 television stations in 102 markets. — Todd Shields, BostonGlobe.com, "Sinclair selling stations to Fox in bid to get Tribune approval," 9 May 2018 Among the half below the threshold, the FTC required just three divestitures. — Greg Ip, WSJ, "How ‘Stealth’ Consolidation Is Undermining Competition," 19 June 2019 The potential divestitures are aimed at appeasing the Justice Department, which wants T-Mobile and Sprint to sell enough assets to ensure that the United States maintains at least four viable wireless players. — Washington Post, "Housing starts fell last month after flooding," 18 June 2019 The Traton offering is potentially the first of a number of divestitures that could be in Volkswagen’s pipeline. — William Boston, WSJ, "Volkswagen Sets IPO Price Range for Its Big-Truck Unit," 13 June 2019 Its 2018 revenue was down from $1.6 billion the year before, a decline the company attributed to divestitures. — Orla Mccaffrey, Dallas News, "Irving pipe maker Forterra names new CEO following resignation," 25 June 2019 Organic sales, which exclude currency fluctuations and the effect of acquisitions and divestitures, rose across Mondelez’s international markets, including a 6.1% gain in Asia, the Middle East and Africa. — Micah Maidenberg, WSJ, "Mondelez Results Boosted by International Sales," 30 Apr. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'divestiture.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for divestiture
divestiture
nounFinancial Definition of divestiture
What It Is
A divestiture or divestment is the reduction of an asset or business through sale, liquidation, exchange, closure, or any other means for financial or ethical reasons. It is the opposite of investment.
How It Works
Let's assume Company XYZ is the parent of a food company, a car company, and a clothing company. If for some reason Company XYZ wants out of the car business, it might divest the business by selling it to another company, exchanging it for another asset, or closing down the car company.
Why It Matters
Optimists often look at divestitures as ways to streamline (i.e., "get back to basics"), reduce debt, and enhance shareholder value. Pessimists may view them as concessions that the divested assets were not performing well.
Source: Investing Answers
divestiture
noun
English Language Learners Definition of divestiture
See the full definition for divestiture in the English Language Learners Dictionary
divestiture
noun
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