You are here: Home - Uncategorized -

Cadburys looks much sweeter to investors split into two

Written by:

Cadbury Schweppes has confirmed that it plans to split itself up into two parts, separating the confectionery from the drinks side of its business.

The Americas Beverages sector is to split off from the more traditional Cadbury side – familiar to UK consumers with brands like Dairy Milk – and there have been reports that private equity groups are expressing interest in the drinks operation.

Cadbury said it would provide more information on the proposed demerger at its trading update briefing on 19th June.

“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,” said Cadbury chairman Sir John Sunderland.

Shares in the company have risen 10% in this week alone as American businessman Nelson Peltz bought a stake, provoking much takeover speculation.

“I’m not surprised at Peltz’s intervention, as he has expressed an interest in hiving off the drinks arm and driving it forward apart from Cadbury,” said a senior commercial analyst at a City brokerage.

Cadbury’s is the third largest carbonated drinks company in the world by sales volume, behind Coca-Cola and Pepsi. It bought its US drinks business in 1995 for £1.8bn and in 2006 the division made profits of £584m.

Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Asian stock markets bounce back but volatility continues

Asian stock markets have had a better day’s trading after Wednesday’s massive sell-off on the back of fears about the...