Definition: Break-up

Category: Business registers

ENTERPRISE - Break-up involves one enterprise before and more than one enterprise after the event. In a break-up, the enterprise is divided in such a way that neither (none) of the new enterprises keeps the identity of the original enterprise. 

There is no continuity or survival, but the closure of the previous enterprise is not considered to be a real death. Similarly the new enterprises are not considered to be real births. A break-up can be seen as the opposite of a merger.

ENTERPRISE GROUP - Like enterprise, an enterprise group may disintegrate into two or more enterprise groups. In a break-up, the enterprise group is divided in such a way that neither (none) of the new enterprise groups keep the identity of the original enterprise group. http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-32-10-216-EN-C-EN.pdf Sixth Council Directive 82/891/EEC on the division of public limited liability companies