Divestiture motivations

Andrew Papadopoulos and Russell Fralich

Chapter 47 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 121-123 from Edward Elgar Publishing

Abstract: This chapter examines reasons for divestitures, including debt reduction, unlocking conglomerate discounts, addressing over-diversification, or responding to strategic or regulatory pressures. It also explores macro-environmental triggers like sustainability concerns and geopolitical events. The chapter discusses acquisition-related “indigestion” and forced divestitures due to anti-trust regulation. It emphasizes aligning divestiture strategies with long-term goals and navigating trade-offs for optimal outcomes.

Keywords: Conglomerate; Conglomerate discount; Unrelatedness; Dominant logic; Antitrust; Remedy statements (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781800880863.00053 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20450_47

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().