Demerger
Last updated: 8 September 2023.
Demerging means dividing a limited company into two or several companies.
The acquired company (the existing company) can transfer all its assets to two or several acquiring companies (liquidation demerger), so that the original company ceases to exist. Alternatively, the acquired company can keep some of the assets (demerger by way of capital reduction), while others are transferred to one or several other companies.
The acquiring company/companies can implement the demerger after the rules on foundation (merger by foundation of a new company) or after the rules on capital increase (demerger by transferring to an existing company).