divest
The company decided to divest its non-core operations to focus on its main business.
The company chose to sell off its less important divisions to concentrate on its primary industry.
To sell or dispose of assets, investments, or business units.
After the merger, the new entity was required to divest several subsidiaries to comply with antitrust laws.
Following the merger, the combined company had to sell off multiple branches to meet legal competition requirements.
The fund manager plans to divest from fossil fuels within five years.
The fund manager intends to sell off investments in fossil fuel companies within a five-year period.
Often used in corporate restructuring or regulatory contexts. Can also imply removing oneself from a situation or belief system metaphorically.
To deprive someone of power, rights, or possessions.
The court ruled that the government could not divest the citizens of their constitutional rights.
The court determined that the government was not allowed to strip citizens of their constitutional rights.
Rare in modern usage; more common in legal or historical contexts.
Collocations
Related Phrases
Pro Tip
Distinguish from 'invest'
Remember that 'divest' is the opposite of 'invest.' If a company divests, it sells off assets; if it invests, it acquires them.
Gold Rule
Context matters
In finance, 'divest' means selling assets. In legal contexts, it can mean stripping rights or possessions. Always check the context to avoid confusion.
Word Origin
From Latin *divestire* (to undress), combining *dis-* (apart, away) + *vestire* (to clothe). Entered English in the late 16th century with the sense of 'strip of clothing' or 'deprive of a position', later extending to financial contexts.
Usage Notes
Primarily used in formal or professional contexts. In finance, it often refers to strategic decisions to focus on core activities. Avoid confusing with 'disinvest,' which is less common but sometimes used synonymously. The noun form is 'divestiture.'