👉 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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