Demerger
Nowadays, Demerger is a topic that generates great interest and debate in today's society. Since its emergence, Demerger has gained relevance in different areas, awakening the curiosity of experts, academics and the general public. Its impact has transcended borders and its influence has been noted in popular culture, politics, economics and technology. In this article, we will explore the phenomenon of Demerger in depth, analyzing its origins, evolution and repercussions on today's society. Through different perspectives and opinions, we will try to shed light on this topic and understand its relevance in the contemporary world.
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A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components.[1] It is the converse of a merger or acquisition.
A demerger can take place through a spin-off by distributing or transferring the shares in a subsidiary holding the business to company shareholders carrying out the demerger. The demerger can also occur by transferring the relevant business to a new company or business to which then that company's shareholders are issued shares of.[1]
In contrast, divestment can also "undo" a merger or acquisition, but the assets are sold off rather than retained under a renamed corporate entity.
Demergers can be undertaken for various business and non-business reasons, such as government intervention, by way of antitrust law, or through decartelization.[2]
See also
References
- ^ a b Bryer, Lanning G. (2002). Intellectual property assets in mergers and acquisitions. John Wiley and Sons. pp. 12.2 – 12.3. ISBN 978-0-471-41437-7.
- ^ Krishna, K.L.; Uma Kapila (2009). Readings in Indian Agriculture and Industry. Academic Foundation. p. 599. ISBN 978-81-7188-734-7.
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