'denationalize' originates from the prefix 'de-' meaning 'reverse' or 'remove' and 'nationalize' from 'nation' meaning 'a large group of people united by common descent, history, culture, or language, inhabiting a particular country or territory.'

'denationalize' changed from the concept of 'nationalize' which was used in the 19th century to describe the process of bringing industries under state control, and eventually became the modern English word 'denationalize' to describe the reverse process.

Initially, it meant 'to remove from national control,' and this meaning has largely remained the same in modern usage.