Cadbury (CSG) said it would split in two just days after billionaire activist investor Nelson Peltz disclosed a 3% stake in the sweets company.
Cadbury said it would separate its candy business from its U.S. soft drinks side. The company said more details will be available in June.
"The board believes Americas Beverages now has the appropriate platform to exploit the benefits of focus as a stand-alone business," Cadbury said. "Therefore, it is the right time to pursue a separation of Americas Beverages and we are evaluating the options to achieve this."
Just yesterday, Cadbury reportedly hired bankers to consider a split. The company had previously said it preferred to keep all its businesses together under the rationale that the whole was worth more than the parts.