Demerge is used to describe a strategic business decision to separate a company's divisions. After the demerge, the publishing sector operated independently from the entertainment sector.
Pro Tip 2/3
Independent Operation
Post-demerge, the new companies operate autonomously, often focusing on a specific market sector. The demerge created two focused enterprises: one for commercial lending, and one for personal banking.
Pro Tip 3/3
Market Adaptation
A demerge can be a response to market pressures that demand more agile and specialized entities. The pharmaceutical company's decision to demerge was to adapt to rapidly changing healthcare demands.