Cadbury Schweppes is to split its confectionary and US drinks arm.

Cadbury Schweppes has revealed it has secured $3.8 billion (£1.9 billion) in financing to demerge its confectionary and US drinks business, a year after it first announced plans to split the groups.

The company said it is expecting the transaction, which will see its drinks arm become known as Dr Pepper Snapple Group (DPSG), to be made on 7 May 2008 after securing funds from a consortium of five banks.

Before the split, Cadbury Schweppes will have £3.2bn in debt. Afterwards, the confectionary arm, Cadbury Plc, will have debts of £1.65bn financed through existing borrowing facilities.

DPSG’s debts will amount to $3.8bn – funded by banks JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley and UBS Securities.

The company announced it is bringing its AGM forward to 11 April as “Cadbury Schweppes will no longer be a listed company.”

Following the demerger, shares in Cadbury plc will be listed on the London Stock Exchange while DPSG will be on the New York Stock Exchange.

By Natasha Piscitelli