Spinning off business into a completely separate company. Usually done by distributing shares in the new company to existing company.... more on: Demerger

The disintegration of company into separate operations in the expectation that will enhance performance.

A company hives off some of its units into a wholly owned separate concern which may also be listed on a stock exchange. Can occur following a number of acquisitions of a similar nature which may diverge from a company's mainstream operations.

Separation of a portion of company Aâ€(tm)s operations/assets into Company B. Shareholders of Company A receive free shares of Company B.

The Demerger of Zeneca Limited and its subsidiaries from the ICI Group

a complex procedure that can fundamentally change the rights of the members of the participant companies

a form of re-organisation where business activities owned by one company or group are separated out into several companies or groups

a vertical split as a result of which one company gets split into two or more

The process that a company goes through when a part or parts of the company split into more companies. The company distributes shares to the shareholders that are part of the demerger in addition to the shares they already have.

The separation of Boral's energy business and building and construction materials business into two separately listed companies now trading as Origin Energy Ltd and Boral Ltd respectively.

The process by which part or parts of a company split to become independent firms.

The splitting of a company, often originally formed as a result of a merger, into two or more separate companies. It gives the existing shareholders shares in both companies.

In Australia, we carried out the AUD3.75 billion Demerger of Foodland Association Ltd. and its subsequent sale to Woolworths and Metcash.

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.

This is when a company splits into two or more companies. The number of shares you get in each new company reflects their value compared with the value of the old company. If the market thinks the move will benefit shareholders, the new companies might be worth more in total than the old business.

Demerger is the converse of a merger or acquisition. It describes a form of restructure in which shareholders or unitholders in the parent company gain direct ownership in a subsidiary (the ‘demerged entity’). Underlying ownership of the companies and/or trusts that formed part of the group does not change.