Demerger

A demerger is a form of corporate restructuring whereby parts of a business are separated into different corporations. It is the converse of a merger or acquisition. Companies demerge for various strategic reasons, such as improving the focus within a business or raising capital, and can be forced to do so, in some jurisdictions, due to government intervention to improve market competition. Demerging a public company will often result in an immediate fluctuation in share price. Demerging can also occur prior to the newly formed company or companies being listed on the stock market.