You are in > manchester.com  > News > Cadbury Schweppes confirms split plan

Business

Cadbury Schweppes confirms split plan

15/03/2007

Confectionery and drinks firm Cadbury Schweppes has confirmed plans to split itself in two.

A statement issued this morning by the British-owned company confirmed media speculation that the confectionery arm would be separated from its Americas Beverages business.

The move comes after meetings with major shareholders, who Cadbury Schweppes said had expressed approval about the "transformation".

"We believe now is the moment to separate and give both management teams the focused opportunity to extract the full potential inherent in these excellent businesses," the company's chairman, Sir John Sunderland, said.

Meanwhile Todd Stitzer, Cadbury Schweppes' chief executive, said: "Separating these two great businesses will enable two outstanding management teams to focus on generating further revenue growth, increasing margin, and enhancing returns for their respective shareowners."

Today's move prompted a positive response in the market, where shares in the company increase in value by 3.9 per cent during the first hour of trading.

Analysts believe the company's confectionery arm, which includes brand names such as Trident, Cadbury, Halls and Dentyne, could become the target of takeover bids from private equity firms and market rivals like Marks and Kraft.

US investor Nelson Peltz bought a stake in the company earlier this week, causing a ten per cent share increase on bid speculation.

© Adfero Ltd