demerger
A procedure by which part of the business of a company or subsidiary in a group of companies is transferred directly to shareholders (or a class of them) by a distribution thereby creating separate companies in common ownership. The procedure is complex and requires tax advice and advance clearance. Professional advice must be sought.

Easyform Glossary of Law Terms. — UK law terms.


demerger
Also known as a spin off (spinoff, spin-off). Where a business splits into two or more separate organisations, usually by issuing the shares of one or more companies to the shareholders of the existing business.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Demerger — is a form of corporate restructuring in which the an entity s business operations are segregated into one or more components.[1] It is the converse of a merger or acquisition. A demerger can take place through a spin out by distributed or… …   Wikipedia

  • demerger — See spin off / unbunding Euroclear Clearing and Settlement glossary The distribution of subsidiary rights to shareholders of the parent company, with no surrender of shares. A spin off represents a form of divestiture resulting in an independent… …   Financial and business terms

  • demerger — UK [diːˈmɜː(r)dʒə(r)] / US [dɪˈmɜrdʒər] noun [countable] Word forms demerger : singular demerger plural demergers business British a demerger takes place when one company separates from a larger group to which it belonged …   English dictionary

  • démerger — (dé mèr jé. Le g prend un e devant a et o) v. n. Terme de marine. Éprouver un démergement. ÉTYMOLOGIE    Dé.... préfixe, et le verbe latin mergere, plonger. SUPPLÉMENT AU DICTIONNAIRE DÉMERGER. Ajoutez : 2°   Tirer d une eau venue par inondation …   Dictionnaire de la Langue Française d'Émile Littré

  • demerger — de|merg|er [ di mɜrdʒər ] noun count BRITISH BUSINESS a demerger takes place when one company separates from a larger group to which it belonged …   Usage of the words and phrases in modern English

  • demerger — [[t]di͟ːmɜ͟ː(r)ʤə(r)[/t]] demergers N COUNT A demerger is the separation of a large company into several smaller companies. [BRIT] Ant: merger …   English dictionary

  • demerger — n. * * * …   Universalium

  • demerger — noun a) A partial or complete reversal of a previous merger b) The disposal of subsidiaries or divisions of a company …   Wiktionary

  • demerger — n. To sell off subsidiaries, divisions, or other corporate businesses. Example Citation: Siemens, Germany s largest electronics group, plans a big shake up of its businesses, including disposals and demergers, in an effort to improve its… …   New words

  • demerger — n. (British) merger between companies (two or more) that dissolved; separation of one company from a larger group or from a larger company …   English contemporary dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”