Is “Denationalizing” a Scrabble word?

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Yes
DENATIONALIZING
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Unavailable

Meaning of Denationalizing

verb
  1. 1.To transfer the control and ownership of an industry from government to private hands; to privatize.

  2. 2.To strip of nationhood; to cease to recognise, or allow to exist, as a nation.