Cadbury set demerger date

Mar 11 2008

Cadbury Schweppes today set a date of May 7 for the demerger of American drinks arm, Dr Pepper Snapple.

The Dairy Milk and Bassett firm had planned to sell the drinks business, maker of Dr Pepper and 7Up, but changed its mind in the summer after the credit crunch hit the ability of potential buyers to raise finance.

The company is instead demerging the business through a listing on the New York Stock Exchange. Shareholders will meet on April 11 to vote on the proposal, with shares in Dr Pepper Snapple due to start trading on May 7.

The remaining Cadbury operation will be the world's largest confectionery business, with number one or number two positions in 20 of the world's 50 largest confectionery markets. Brands include Creme Egg and Green and Black's in chocolate and Trident and Dentyne in gum.

Cadbury will have net debt of £1.65 billion, with Dr Pepper Snapple holding around £1.9 billion. Existing shareholders will have stock in both companies.