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What Is a Demerger?

What Is a Demerger?

A demerger is the splitting of one firm into two or more separately owned businesses, often by distributing shares in the new businesses to the original firm's shareholders. The resulting businesses may become independent listed companies.

This differs from a divestment, where a firm sells a division or subsidiary to a new owner. A sale does not necessarily give the original firm's shareholders ownership of separate businesses.

3.1.3 Demergers Lesson

  1. A Level
  2. /Economics
  3. /3.1.3 Demergers

Step-by-step lessons on Edexcel A A Level Economics 3.1.3 Demergers. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons