Split-Up

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Definition of 'Split-Up'

A corporate action in which a single company splits into two or more separately run companies. Shares of the original company are exchanged for shares in the new companies, with the exact distribution of shares depending on each situation. This is an effective way to break up a company into several independent companies. After a split-up, the original company ceases to exist.
Investopedia Says

Investopedia explains 'Split-Up'

A company can split up for many reasons, but it typically happens for strategic reasons or because the government mandates it. Some companies have a broad range of business lines, often completely unrelated. This can make it difficult for a single management team to maximize the profitability of each line. It can be much more beneficial to shareholders to split up the company into several independent companies, so that each line can be managed individually to maximize profits. The government can also force the splitting up of a company, usually due to concerns over monopolistic practices. In this situation, it is mandatory that each segment of a company that is split up be completely independent from the others, effectively ending the monopoly.

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'Split-Up'

  • Conoco Phillips To Split Up

    http://stocks.investopedia.com/stock-analysis/2011/Conoco-Phillips-To-Split-Up-COP-XOM-CVX-APA-APC-VLO-MRO-MPC0714.aspx
    ... Article; Comments (0). Conoco Phillips To Split Up.
    Posted: Jul 18, 2011 10:18 AM by Eric Fox. ...

  • Understanding Leveraged Buyouts

    http://www.investopedia.com/articles/financial-theory/08/leveraged-buyouts.asp
    ... There are many scenarios driving a buyout, but four examples are the repackaging
    plan, the split-up, the portfolio plan and the savior plan. ...

  • What is a tranche?

    http://www.investopedia.com/ask/answers/04/081304.asp
    ... In the world of investing, it is used to describe a security that can be split
    up into smaller pieces and subsequently sold to investors. ...

  • Energy Sector Breakup Candidates

    http://stocks.investopedia.com/stock-analysis/2011/Energy-Sector-Breakup-Candidates-UNT-MDU-WMB-MRO-MPC0704.aspx
    ... The energy sector has seen a number of recent restructurings as some diversified
    energy companies have split up through either a spinoff or initial public ...

  • Has Kraft Saved The Best For Last?

    http://stocks.investopedia.com/stock-analysis/2011/Has-Kraft-Saved-The-Best-For-Last-KFT-PEP-DMND-HSY-SLE-GIS-UL-K-NSRGY1103.aspx
    ... Now in the wake of the company's announcement that it will split up, it feels a
    little ironic that the pieces seem to be working together a little better. ...

  • Top 5 Ways to Protect Yourself Against Problem Renters ...

    http://financialedge.investopedia.com/financial-edge/1011/Top-5-Ways-to-Protect-Yourself-Against-Problem-Renters.aspx
    ... The written agreement should contain the rental rate, the length of the agreement,
    how the utility payments are split up and the many other complexities that ...

  • Get Through Divorce With Your Finances Intact

    http://www.investopedia.com/articles/pf/07/split_finances.asp
    Find out how to split your finances without coming up short.

  • State Laws Dictate Division Of Joint Property

    http://www.investopedia.com/articles/pf/08/community-common-law-property.asp
    ... This article will examine the nature of common law and community property
    and what those differences mean when couples split up. ...

  • Kraft Hopes Two Is Better Than One

    http://stocks.investopedia.com/stock-analysis/2011/Kraft-Hopes-Two-Is-Better-Than-One-KFT-K-UL-PEP-LNCE-DMND-BGS0809.aspx
    Kraft's earnings were OK, but the company's decision to split up is a head-scratcher.

  • Who bears the risk of bad debts in securitization?

    http://www.investopedia.com/ask/answer/07/securitizationrisks.asp
    ... instruments' cash flows. The risk of bad debt, however, can be split up
    in different proportions among the investors. Depending on ...

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