divestiture

noun di·ves·ti·ture \ dī-ˈves-tə-ˌchu̇r , -chər , də- , chiefly Southern -t(y)u̇(ə)r \

|Updated on: 2 Aug 2018

Examples: divestiture in a Sentence

Definition of divestiture

1 : the act of divesting

2 : the compulsory transfer of title or disposal of interests (such as stock in a corporation) upon government order

See divestiture defined for English-language learners

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

American Medical Association Urges Regulators To Block CVS-Aetna Deal » Analysts have said regulators may demand business divestitures before a CVS-Aetna deal is approved, but that ultimately the transaction would be approved.

— stephen singer, courant.com, "Report: Justice Department Will Not Challenge $69 Billion CVS-Aetna Deal," 12 July 2018
Financially struggling oilfield services firm Weatherford International finally has found a buyer to acquire its Middle East onshore drilling rig business for $287.5 million as part of its long-term divestiture plans.

— jordan blum, Houston Chronicle, "Weatherford finally sells its Middle East land rig business," 12 July 2018
The largest divestiture this year is an $11 billion deal to sell its locomotive unit.

— alexander coolidge, Cincinnati.com, "GE breakup so far eludes Nelson Peltz. What does that mean for P&G?," 25 June 2018
Photo: Getty Images But Fox believes regulators could still raise concerns about a deal with Comcast that could lead to a rejection, delay in deal approval or significant divestitures, according to the filing.

— amol sharma and dana mattioli, WSJ, "Comcast Hunts for Additional Cash in Pursuit of 21st Century Fox Assets," 27 June 2018
In his largest industrial divestiture, Immelt sold GE’s plastics business to Saudi Basic Industries for $11.6 billion just before the financial crisis; the price was more than analysts expected, and the deal was widely regarded as excellent for GE.

— geoff colvin, Fortune, "What the Hell Happened at GE?," 24 May 2018
Crawford explains the alternative to outright blocking has already been suggested to Judge Leon: requiring the divestiture of DirecTV, which competes nationwide for pay-TV subscribers with everyone else.

— claire atkinson, NBC News, "Where's the beef? IHOP, er, IHOB brings it with marketing stunt that triggers burger chains," 11 June 2018
Such a decision on divestitures would be a rare move by a judge in a vertical merger and, like a decision to block the deal entirely, could have a chilling effect on other vertical mergers.

— New York Times, "AT&T-Time Warner Ruling Has Dealmakers Bracing," 10 June 2018
Flannery previously pledged $20 billion-plus in divestitures, to focus on GE’s power, health care, and aviation businesses -- and to shore up that flagging stock price.

— jon chesto, BostonGlobe.com, "GE steps up divestitures with deal to exit transportation equipment business," 21 May 2018

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

divest + -iture (as in investiture)

NEW! Time Traveler

First Known Use: 1601

in the meaning defined at sense 1

See Words from the same year

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of DIVESTITURE

divestiture

noun

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 Defined for English Language Learners

divestiture

noun

Definition of divestiture for English Language Learners

finance : the act of selling stock, property, etc., because of a government order

Law Dictionary

divestiture

noun di·ves·ti·ture \ dī-ˈves-ti-ˌchu̇r, də-, -chər \

legal Definition of divestiture

1 : the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)

2 : the sale of an asset (as a business division) that is unprofitable, does not enhance a corporate restructuring, or is felt to be morally reprehensible