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DIVESTITURE

Statistics Directorate    
Definition:
Divestiture refers to firms selling part of their current operations, divisions or subsidiaries.

Context:
Divestiture may take place as a result of firms restructuring their business in order to concentrate on certain products or markets. It may also be imposed upon them by competition authorities as a result of a merger or acquisition which is likely to reduce competition substantially. Divestiture under these latter circumstances is aimed at maintaining existing competition in the market. Divestiture may also form a part of a policy to deconcentrate an industry.

Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 03, 2002

Last updated on Friday, March 15, 2002