BusinessJuly 18, 2026

demerger

dee-MUR-ger

Definition

The corporate action of spinning off a division or subsidiary into a separate, independent company, often resulting in shareholders receiving shares of the new entity.

Etymology

The word is formed from the prefix 'de-' (meaning 'away from' or 'undoing') combined with 'merger', which stems from the Latin 'mergere' meaning 'to plunge' or 'to dip'.

In the news

In the article, 'demerger' describes the process of separating a consumer brands business from the main retail entity, which required analysts to adjust financial growth figures to reflect the true performance of the remaining business.

Reliance Industries Q1 PAT grows 6% YoY; revenue climbs 25%

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Business Standard

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