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What is a demerger?

What is a demerger? Here are some definitions.

Noun
  1. A partial or complete reversal of a previous merger.
  2. The disposal of subsidiaries or divisions of a company.
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One obvious solution may be to quickly sell any shares following a demerger to help maintain order in your portfolio.
And there is no let-up in the pressure for a demerger, which many insist is the only way to unlock the value in the firm's many well-known brands.
For taxation purposes, the deal has been officially classed as a demerger rather than a management buyout.
On Tuesday, the company is due to release further details regarding the demerger of its electricals division.
The demerger is intended to unlock shareholder value and allow increased focus on the development of its two diverging areas of core expertise.
The chairman will address the shareholders on the proposed demerger.

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