What is demerger?

What is demerger?

1) Demergers are situations in which divisions or subsidiaries of parent companies are hived off into independent corporations.

2) The process for a demerger can vary depending on the reasons behind the implementation of the split.

3) Generally, the parent company maintains some degree of financial interest in the newly formed corporation, although that interest may not be enough to maintain control of the new corporate entity.


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