Cadbury Schweppes has looked to end speculation over the planned demerger of its US beverage wing from its confectionery business and said the move will go ahead in May.
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The UK-based group had faced questions over whether the split would take place after growing concerns that the credit crunch had hampered the company’s ability to raise finance for the move.
However, Cadbury said the demerger would go ahead and that the US drinks business Dr Pepper Snapple Group (DPSG) would list on the New York Stock Exchange on 7 May.
DPSG has also signed a deal with a consortium of five banks to raise finance for the move, Cadbury said.
Cadbury Schweppes will hold its AGM on 11 April and it expects to list the stand-alone confectionery unit – Cadbury plc – on the London Stock Exchange on 2 May.
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By GlobalDataThe demerger of the US drinks operations is seen as a critical factor in boosting margins from Cadbury’s confectionery business, the world’s largest.
Cadbury Schweppes announced its intention to split the two businesses last March and hoped it could sell the beverage arm.
However, last summer’s credit crunch meant a sale was unlikely and in October, the company said it would press ahead with a demerger.
