Divestment refers to the process of selling, disposing of, or relinquishing ownership of assets, investments, or holdings. This can occur through various methods, such as mergers and acquisitions, the sale of intellectual property rights, or other transactions.
Divestment is essentially the opposite of investment and typically occurs when an asset, division, or business unit is underperforming or no longer aligns with the company’s strategic goals. In some cases, a company may be compelled to divest assets due to legal actions or regulatory requirements.
