Article on other languages:
 |
del.icio.us |
 |
Digg |
 |
Furl |
 |
|
 |
Rojo |
| Add to OnlyWire |
In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial goals or ethical objectives. A divestment is the opposite of an investment.
Divestment for financial goals
Often the term is used as a means to grow financially in which a company sells off a business unit in order to focus their resources on a market it judges to be more profitable, or promising. Sometimes, such an action can be a spin-off. (For the United States); Divestment of certain parts of a company can occur when required by the Federal Trade Commission before a merger with another firm is approved. A company can divest assets to wholly owned subsidiaries.
The largest, and likely most-famous, corporate divestiture in history was the 1984 U.S. Department of Justice-mandated breakup of the Bell System into AT&T and the seven Baby Bells.
External links
- Institute of Mergers, Acquisitions and Alliances (MANDA) M&A - Ans academic research institute on mergers & acquisitions, incl. divestments
See also
- Consolidation (business)
- Corporate social responsibility
- Demerger
- Divestment campaign
- Financial economics
- Tax resistance
|
|||||||||||||||||||||||||
More about Divestiture: acquisition by company divestiture guide petroleum process property strategy successful tactic used, asset divestiture,