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vertical divestiture

noun

  1. the disposal of some or all the subsidiaries that make up a company's vertical combination through voluntary sale or legal compulsion.


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Word History and Origins

Origin of vertical divestiture1

First recorded in 1970–75
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Example Sentences

Most of the 16 other industry-reform bills in Congress deal with "vertical" divestiture: that is, the production, transportation and marketing operations of the big integrated companies would be broken up into separate, independent entities�a move that industry critics have long argued would promote greater competition and, perhaps, lower fuel prices for customers.

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vertical combinationvertical envelopment