The sale or disposal of a business unit, subsidiary, or asset by a company. Divestitures allow companies to focus on core operations, raise capital, or comply with regulatory requirements by spinning off non-essential parts of their business.
From Latin 'divestire' meaning to undress or strip away, entering business vocabulary in the 1960s. The term gained prominence during the 1980s corporate restructuring wave when conglomerates began selling off unrelated businesses to focus on core competencies.
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