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

The act would prohibit the parent companies of PBMs or health insurers from owning pharmacy businesses and require divestiture within three years. —Danny Sanchez, Forbes.com, 31 Mar. 2025

The company completed the divestiture of its Elevai Skincare business in January 2025 to focus on its biotechnology and investment operations. —Quartz Intelligence Newsroom, Quartz, 28 Mar. 2025

President Trump on Wednesday floated reducing tariffs on China to get a TikTok divestiture deal done as the April 5 deadline nears. —Miranda Nazzaro, The Hill, 26 Mar. 2025

But Senate Democrats have expressed concern that a deal involving Oracle may not satisfy the law's requirement for a full divestiture of Chinese ownership. —Daniel R. Depetris, Newsweek, 25 Mar. 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