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A complete asset or investment disposal such as outright sale or liquidation.


The removal of assets from a person or firm's balance sheet through sale, exchange, closure, bankruptcy, or some other means. Divestiture may occur when a person or company has acquired more than he/she/it can properly administer. This sort of divestiture may occur slowly; for example, a corporation may slowly sell subsidiaries to concentrate exclusively on its core competence. On the other hand, divestiture may occur because a person or company has become cash poor and needs to build liquidity very quickly.


The sale, liquidation, or spinoff of a division or subsidiary. For example, a firm may decide to divest itself of a division in order to concentrate its managerial efforts on more promising segments of its business.
References in periodicals archive ?
Kirin to Divest Fresh Milk Activities in Australia 134
Friesland Foods to Divest Milkshake and Ice Cream Business 147
Shanghai Milk to Divest Stake in Shanghai Wyeth 147
Dairy Crest to Divest Stilton & Specialty Cheese to Long
National Foods to Divest Two Milk Processing Facilities 151