(redirected from De-Mergers)


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


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
References in periodicals archive ?
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.
The team advises on matters ranging from basic terms and conditions to a variety of multi-million pound commercial transactions, including company and business sales and acquisitions, venture capital and private equity investments, turnaround and restructuring transactions, corporate de-mergers and reorganisations and s110 Insolvency Act reconstruction schemes, as well as acting for a number of national franchisors.
This product helps to provide migration solutions for cases like Mergers, De-mergers, Acquisitions IT Transformations, and Infrastructure Upgrades, Regulatory Requirements, Business Process Transformations and Server or Storage Technology Replacement.
"The law was amended to make mergers and de-mergers taxneutral, if they complied with certain conditions.
Her main areas of work include acting for clients on asset sales and acquisitions, share sales and acquisitions, company transactions, shareholder agreements, commercial contracts and company reconstruction including de-mergers.
Nicknamed the quiet man of retailing, he was also chief executive of GUS, the now-defunct conglomerate that used to own Argos, Homebase and Experian, overseeing a string of acquisitions, de-mergers and disposals during his time with the group.
Birla Sunlife Mutual Fund fund manager Atul Penkar said that special situations could be defined as opportunities arising out of various events such as mergers, de-mergers, asset play and various other opportunities.
** Partial de-mergers in the event that one or more partners wish to leave a combined firm under a predetermined set of conditions
And since investment bankers have the most to gain from mergers and de-mergers, it's in their interest to keep redefining the terms.
The funny thing about de-mergers, you can never be sure which half will do best.