What term refers to a situation where companies sell off subsidiaries to focus on core business?

The term that describes the situation where companies sell off subsidiaries to concentrate on their core business is "divestiture." This process allows a company to streamline its operations by shedding parts of its business that may be underperforming or not aligned with its primary strategy. By divesting, companies can focus on their main competencies, redirect resources, and improve overall financial performance.

Divestitures are often strategic moves aimed at reallocating capital to more promising areas, enhancing efficiency, and ultimately increasing shareholder value. This practice contrasts with acquisitions, where a company would buy another business to expand its operations. De-integration and disinvestment do not specifically capture the focused action of selling off parts of the business to concentrate on core operations.