👉 Divestitures are actions taken by a company to reduce its holdings in another company. This can include selling stock, giving it away as part of an acquisition, or selling assets that no longer serve a business purpose. For example, a company might decide to sell shares in a rival company because the rival is not performing well and the company wants to focus on its own operations. Alternatively, the company may decide to give away assets rather than sell them outright, as it believes they are more valuable to
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What is the definition of Divestiture? 🙋
👉 Divestiture is a legal process in which an individual or entity acquires control over a company by selling its assets to another party. This can be achieved through various means, including a sale of shares, a transfer of ownership, or a merger between two companies. The goal of divestiture is often to reduce the value of a company and increase the marketability of its stock.
