Examples of divestiture in a Sentence
Divestitures are used to break up monopolies.
Before divestiture, the telephone company monopolized the state.
Recent Examples of divestiture from the Web
The department said that the divestitures will remedy the acquisition's anticompetitive effects by providing the acquirer with the quarries, including substantial reserves, and other assets necessary to compete in these local markets.
The cash raised from a divestiture can be used for other, more attractive initiatives, or can be used to return capital to shareholders, through stock buybacks or dividends.
Carrizo has sold off some $530 million in assets in a divestiture program this year.
Yet by 2016, after the two companies had integrated (and accounting for a divestiture that included 430 employees), the total head count was 15,700.
That divestiture was the sole condition from the Justice Department for approval of GE’s combination with Baker Hughes Inc.
Coke’s revenue fell in the quarter because of divestitures of its U.S. bottling operations.
But Taylor noted cost-cutting and divestitures are the very tools that Peltz has pushed in other companies he's invested in, such as DuPont, Pepsi and Mondelez.
The sale of Brocade’s networking unit to Arris International PLC for about $1 billion is one such divestiture.
These 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.
Origin and Etymology of divestiture
First Known Use: 1601See Words from the same year
Financial Definition of DIVESTITURE
What It Is
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.
DIVESTITURE Defined for English Language Learners
legal Definition of divestiture
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