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The Collaborative International Dictionary of English v.0.48 (gcide)

Denationalize \De*na"tion*al*ize\, v. t. [imp. & p. p.
{Denationalized}; p. pr. & vb. n. {Denationalizing}.] [Cf. F.
d['e]nationaliser.]
1. To divest or deprive of national character or rights.
[1913 Webster]

Bonaparte's decree denationalizes, as he calls it,
all ships that have touched at a British port.
--Cobbett.
[1913 Webster]

An expatriated, denationalized race. --G. Eliot.
[1913 Webster]

2. to change (something, as an industry or business) from
state to private ownership or control; as, the British
denationalization of steel.

Syn: privatize, denationalise.
[WordNet 1.5]