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

Even recent $3 billion divestitures, originally intended for debt reduction or shareholder returns, were quickly offset by new acquisitions. —Joe Cornell, Forbes, 26 Feb. 2025

The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes. —Amelia Lucas, CNBC, 11 Feb. 2025

The company completed several divestitures, including the sale of its Access Solutions, Industrial Fire, and Commercial Refrigeration businesses, generating significant cash proceeds. —Quartz Intelligence Newsroom, Quartz, 11 Feb. 2025

Organic revenues — which strip away the impact of foreign exchange rates, divestitures and calendar changes — rose 8 percent. —Evan Clark, WWD, 29 Jan. 2025

Word History

Etymology

divest + -iture (as in investiture)

First Known Use

1601, in the meaning defined at sense 1

Rhymes for divestiture

• investiture
• vestiture

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