I wasn't aiming for a counterexample so much as an illustration of the fact that whether a company is diversified or not is a matter of definition.
Is a company diversified if it operates in related markets in the same sector, like a bank that does retail and business banking? Is a company diversified if operations outside their core business are only a small fraction of their turnover, like an oil company that has a small renewables operation?
If the purpose of diversification is to keep the company afloat if there's a downturn in one market, these properties are important. Being in retail and business banking won't help if the entire banking sector has problems, and 1% of your business won't keep you afloat if the other 99% of your business is sinking.
Is a company diversified if it operates in related markets in the same sector, like a bank that does retail and business banking? Is a company diversified if operations outside their core business are only a small fraction of their turnover, like an oil company that has a small renewables operation?
If the purpose of diversification is to keep the company afloat if there's a downturn in one market, these properties are important. Being in retail and business banking won't help if the entire banking sector has problems, and 1% of your business won't keep you afloat if the other 99% of your business is sinking.