Although the field of mergers and acquisitions tends to focus on corporate expansion, companies often have to contract and downsize their operations. This need may arise because a division of the company is performing poorly or simply because it no longer fits into the firm’s plans. One motive that is often ascribed to mergers and acquisitions is synergy. Synergy refers to the additional gains that may be derived when two forms combine. When synergy exists, the combined entity is worth more than the sum of the parts valued separately. Reverse Synergy means that the parts are valued separately than they are within the parent company’s corporate structure. This is an effort to gauge through the concept of reverse synergy in the back drop of India’s biggest private sector corporate entity  Reliance Industries Limited.

Keywords: synergy, reverse synergy, divestitures

Suggested citation: Pandiya, S. & Srivastava, S.K. (2007). The mechanics of de merger: A study of Reliance Industries Ltd. Skyline Business Journal, Voume 4, No.1, pp 50-54

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