Divestiture

Pronunciation: /dɪˈvɛstɪtʃər/

Divestiture (noun)

  1. The act of selling or giving away a company part, such as a business unit, to reduce ownership or focus on other activities.
  2. The process of taking assets out of someone’s control, often required by law or policy to limit risk or influence.

Examples

  • The company planned a divestiture to sell part of its business.
  • A divestiture can help a firm focus by selling part of its business.