Demergers are in fashion again. After years of rampant and unpredictable M&A activity, 2012 is seeing a significant rise in corporate divestitures. According to a recent Financial Times report, global divestments will increase by over 90 per cent to become a £250 billion market.
Announcements of demergers are usually welcome news to shareholders, but like many well publicised mergers, issues can and will conspire to prevent them delivering the benefits outlined at the outset.