divesture

If the company chooses not to sell, TikTok would be prohibited from app stores – such as those offered by Apple and Google – as well as web-hosting services until a divesture occurs, according to the bill.

The administration’s threat of a forced divesture, similarly, demands skepticism; it sounds great, and the executive branch has compelled the sale of companies back to U.S. owners before, but the Chinese government has already said it would oppose any forced sale of TikTok.

Divesture is a common strategy for merger partners that don’t want to run afoul of antitrust laws that prevent any single firm from controlling too large a share of any consumer market.

Nationally, Kroger expects divesture could involve anywhere from 100 to 375 locations, which would move into a standalone entity dubbed SpinCo, and run by Albertsons.

Reuters reported in June the bureau was expected to seek the divesture of Shaw Mobile, a separate cellular business launched in 2020, as part of the remedies.