de-merger

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De-Merger

A situation in which a company sells one or more of its subsidiaries. Shareholders in the original company are usually given the same proportion of shares in the newly independent company. See also: Spin-off, Divestiture.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

de-merger

the break-up of a company, often originally formed through a MERGER, into two (or more) separate companies. This is most easily achieved when the original businesses comprising the merger have continued to be run as separate divisions of the enlarged group. In this case, for example, the A-B company could be split into separate quoted companies, A and B, with the company's existing shareholders being given shares in both companies. Thus, unlike a DIVESTMENT (the sale of a division to outside interests) or a MANAGEMENT BUY-OUT (the sale of a division to its existing management), initially at least the companies continue to be owned by their existing shareholders.

A de-merger may occur because the merged company has failed to perform up to expectations because of internal conflicts of management, or result from a rethink of the company's BUSINESS STRATEGY favouring a concentration on ‘core’ businesses.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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His experience includes establishing and winding up pension schemes, advising on scheme mergers and de-mergers alongside benefits and member issues as well as assisting employers with legacy issues, particularly in regard to liability reduction, and auto-enrollment matters.
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** Partial de-mergers in the event that one or more partners wish to leave a combined firm under a predetermined set of conditions
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