Legal Definitions - Subject to partial divestment

Subject to partial divestment

When a company is required to sell off only a portion of its assets or business operations, it is subject to partial divestment. This can happen as a result of a regulatory requirement or a strategic decision by the company.

1. Company A is required by the government to sell off 30% of its shares in a subsidiary company as part of an antitrust settlement. This is an example of subject to partial divestment.

2. Company B decides to divest a non-core business unit and sells off only 50% of its assets while retaining the other half. This is also an example of subject to partial divestment.

These examples illustrate how a company can be required or choose to sell off only a portion of its assets or business operations, rather than divesting completely. This can allow the company to maintain some level of control or ownership while still complying with regulatory requirements or achieving strategic goals.