Demerger

A conglomerate merger is the union of two or more businesses engaged in unrelated operations. Such a merger will only occur if it increasesA de-merger is a corporate reorganization where a company is divided into separate parts that can either function independently or be sold or liquidated as a divestiture. A “de-merger” (also known as a “demerger”) enables a large company, like a conglomerate, to raise money by selling off parts that are no longer part of the company’s core product line, to create distinct legal entities to manage different operations, or to split off its various brands or business units to invite or prevent an acquisition. reduces the stockholders’ wealth.