Demerger is the process of separating a company into two or more independent entities. Other words used for demerger include spinoff, divestiture, split-up, and separation. Spinoff means creating a new company from a larger one, and it may involve distribution of shares to the stockholders of the parent company. Divestiture is the process of selling a part of the business to a third party. Split-up is the act of separating a company into smaller fragments. And separation is the general term that denotes a complete or partial division of a company into two or more parts. Each of these synonyms may be used in different situations to describe the demerger process.