Cadbury split to focus on choc
Confectionery and drinks giant Cadbury Schweppes today unveiled plans to split itself in two.
The move by Cadbury – which has its UK headquarters in Birmingham – will involve the separation of its American beverages business from the rest of the company, which is best known for Dairy Milk chocolate and Bassett's sweets.
The company, which is worth £12.5 billion, said it would provide further details in June on how it plans to carry out the split.
Today's announcement comes just days after it was revealed that Nelson Peltz, a well-known activist shareholder, had taken a three per cent stake in the company.
His presence on the shareholder register fuelled speculation that the Cadbury board was under pressure to consider a review of its business.
The group's soft drinks business is famous in the United States for its Dr Pepper and 7Up brands.
Chairman Sir John sunderland said: "Now is the moment to separate and give both management teams the opportunity to extract the full potential in these excellent businesses."
One option for the split could be to offer shareholders two shares for every one they currently hold – one in the confectionery arm and the other in the drinks side.
