divestiture
Meaning: The sale, disposal, or surrender of a business unit, subsidiary, or asset, often undertaken to comply with regulatory requirements or to refocus a company's strategy.
Divestiture (also 'divestment') is the opposite of acquisition. Companies may divest assets voluntarily to streamline operations, raise cash, or exit underperforming markets. Regulators may mandate divestiture as a condition of approving a merger to prevent excessive market concentration. In ethical investment, divestiture refers to selling holdings in controversial sectors such as fossil fuels or tobacco. Common collocations include 'forced divestiture,' 'voluntary divestiture,' 'divestiture of assets,' and 'fossil fuel divestiture.'
Examples
- The competition authority required the divestiture of thirty retail outlets as a condition of approving the merger. 竞争管理机构要求剥离三十家零售门店作为批准合并的条件。La autoridad de competencia exigió la desinversión de treinta puntos de venta como condición para aprobar la fusión.競争当局は、合併承認の条件として30の小売店舗の売却を要求した。경쟁 당국은 합병 승인 조건으로 30개 소매 점포의 매각을 요구했다.
- The conglomerate announced the divestiture of its loss-making chemicals division to focus on core operations. 该企业集团宣布剥离其亏损的化学品部门,以专注于核心业务。El conglomerado anunció la desinversión de su división química deficitaria para centrarse en las operaciones principales.そのコングロマリットは、中核事業に集中するため、赤字の化学品部門の売却を発表した。해당 대기업은 핵심 사업에 집중하기 위해 적자 상태인 화학 사업부의 매각을 발표했다.
- Several university endowment funds have committed to the divestiture of all fossil fuel holdings within the decade. 数所大学的捐赠基金已承诺在十年内剥离所有化石燃料持股。Varios fondos de dotación universitarios se han comprometido a la desinversión total de participaciones en combustibles fósiles en el plazo de una década.複数の大学基金が、10年以内に化石燃料関連の全保有資産を売却することを表明した。여러 대학 기금이 10년 이내에 모든 화석연료 관련 보유 자산을 매각하겠다고 약속했다.
Pronunciation
Usage Guide
Context: finance, corporate, regulatory
Tone: neutral
Origin & History
From 'divest' (to strip, deprive), from Old French desvestir (to undress), from des- (un-) and vestir (to clothe), from Latin vestīre (to clothe). The suffix -iture follows the pattern of 'expenditure.' The financial sense emerged in the 20th century.
Cultural Context
Era: Modern
Generation: All ages
Social background: Universal
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