divestiture

noun

di·​ves·​ti·​ture dī-ˈve-stə-ˌchu̇r 

-chər,

də-,

 chiefly Southern  -t(y)u̇(ə)r

1

: the act of divesting

2

: the compulsory transfer of title or disposal of interests (such as stock in a corporation) upon government order

Examples of divestiture in a Sentence

Divestitures are used to break up monopolies.

Before divestiture, the telephone company monopolized the state.

Recent Examples on the Web

These executives will very likely also have to manage the uncertainty of leaving the parent company, and if they are not appropriately incentivized, their lack of commitment to the divestiture process will likely be reflected in their interactions with potential acquirers. —Raj Sharma, Forbes, 10 Dec. 2024

For those nominees who are approved by the Senate and choose to sell, there is a tax mechanism to help, called a certificate of divestiture. —Luisa Beltran, Fortune, 3 Dec. 2024

Some of its smaller food brands in Britain and other European countries could be on the divestiture slate, Reuters reports. —Kimberly Chin, Axios, 2 Dec. 2024

The plan was rejected by the Biden administration for falling short of full ByteDance divestiture. —Bobby Allyn, NPR, 27 Nov. 2024

Word History

Etymology

divest + -iture (as in investiture)

First Known Use

1601, in the meaning defined at sense 1

Legal Definition

divestiture

noun

di·​ves·​ti·​ture dī-ˈves-ti-ˌchu̇r, də-, -chər 

1

: the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)

2

: the sale of an asset (as a business division) that is unprofitable, does not enhance a corporate restructuring, or is felt to be morally reprehensible