Definition of demerger in English:



  • The separation of a large company into two or more smaller organizations, particularly as the dissolution of an earlier merger:

    ‘the demerger of the security company will be announced on 10 June’
    [as modifier] ‘forty per cent of shareholders approve of the demerger plan’
    • ‘The demerger will be the final chapter in the break-up of the conglomerate which was founded in Manchester in 1900.’
    • ‘For taxation purposes, the deal has been officially classed as a demerger rather than a management buyout.’
    • ‘The demerger is intended to unlock shareholder value and allow increased focus on the development of its two diverging areas of core expertise.’
    • ‘The management are understood to be examining a number of options for the voice and data unit, which include a trade sale or a demerger followed by a management buyout.’
    • ‘Analysts are divided on earnings prospects and on the benefits of the demerger.’
    • ‘One obvious solution may be to quickly sell any shares following a demerger to help maintain order in your portfolio.’
    • ‘The demerger plans include buying out the shareholders for €1.10 a share.’
    • ‘The chairman will address the shareholders on the proposed demerger.’
    • ‘Thus, if your potential client has many divisions, demergers are the ruling conventional wisdom.’
    • ‘The £90m bank facility arranged as part of the demerger package should be enough to see the company through to positive cash flow providing it keeps its capital spend well under control.’
    • ‘And there is no let-up in the pressure for a demerger, which many insist is the only way to unlock the value in the firm's many well-known brands.’
    • ‘There was widespread stockmarket scepticism that the demerger would succeed in increasing the value to shareholders.’
    • ‘Trading in the grey market last week indicated a price range of 38p to 41p, but the price on Monday will be five times higher to reflect a share consolidation on a one-for-five basis on the demerger.’
    • ‘Across the whole group profits more than halved to £128m, but this included a £280m charge for the demerger of its electricals business.’
    • ‘The companies publishing the ratings rely on fees from corporate transactions like acquisitions and demergers for a significant part of their income.’
    • ‘The proposed demerger has the potential to bring significant benefits for shareholders.’