A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. It is the converse of a merger or acquisition.

What is demerger with example?

Definition: Demerger is the business strategy wherein company transfers one or more of its business undertakings to another company. ... Wipro's information technology division is the best example of spin-off, which got separated from its parent company long back in 1980's.

What is demerger in simple words?

A de-merger is when a company splits off one or more divisions to operate independently or be sold off. A de-merger may take place for several reasons, including focusing on a company's core operations and spinning off less relevant business units, to raise capital, or to discourage a hostile takeover.