denationalize

verb2

1. •
   To transfer the control and ownership of an industry from government to private hands; to privatize.
2. •
   To strip of nationhood; to cease to recognise, or allow to exist, as a nation.

   • Doubtless, in thus denationalizing the Tahitians, as it were, the missionaries were prompted by a sincere desire for good; […] — 1847