divestiture

American  

[dih-ves-ti-cher, -choor, dahy-] / dɪˈvɛs tɪ tʃər, -ˌtʃʊər, daɪ- /

Also divestment

noun

1. the act of divesting.

2. the state of being divested.

3. something, as property or investments, that has been divested.

   to reexamine the company's acquisitions and divestitures.

4. Also divesture the sale of business holdings or part of a company, especially under legal compulsion.

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divestiture Cultural  

1. The act of a corporation or conglomerate in getting rid of a subsidiary company or division. In a tactic to pressure South Africa to end apartheid, during the 1980s many Americans and Europeans urged divestiture on corporations doing business in South Africa.

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Etymology

Origin of divestiture

First recorded in 1595–1605; di- ² + (in)vestiture

Explanation

Divestiture is the act of getting rid of something. In business, companies sometimes use divestiture to scale down and save money, by selling off assets. If a corporation owns smaller companies that make snack food, clothing, and roller skates, it may decide it's time to save some money through divestiture. Unfortunately, that probably means selling off the roller skate company. To sell or otherwise rid yourself of something is to divest, which comes from a French word meaning "strip of possessions" or "strip of clothing," and the Latin root vestire, "to clothe."

Example Sentences

See Examples For:

divestiture

The divestiture of MSBC, which made up less than 2% of the company’s annual revenue, is expected to incur between $37 million and $39 million in non-cash charges during the current fiscal fourth quarter.

From The Wall Street Journal ● Jul. 20, 2026

In addition to the cash consideration, Theravance shareholders will receive contingent value rights entitling them to 80% of net proceeds from any future license, divestiture or other monetization of ampreloxetine within the next 10 years.

From Barron's ● Jun. 29, 2026

The divestiture of its Russian assets in 2024 and a name change to Nebius paved the way for a resumption of trading.

From The Wall Street Journal ● May 18, 2026

A potential merger would trigger “major antitrust, divestiture, alliance, execution, and valuation risks,” he added.

From Barron's ● Apr. 14, 2026

Let the enfranchisement be made a tentative thing; and let there be a provision for the divestiture of the Indian of the right, in case disaster to him should supervene upon its application.

From A Treatise on the Six-Nation Indians by Mackenzie, J. B. (James Bovell)

Related Words

• disinvestment
• divestment