Divestitures are used to break up monopolies.
Before divestiture, the telephone company monopolized the state.
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.
First Known Use: 1601
in the meaning defined at sense 1
See Words from the same yearA 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.
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.
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.
See words that rhyme with divestiture Britannica English: Translation of divestiture for Arabic speakers
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