Cadbury's chief executive Todd Stitzer has confirmed plans to split the business into two parts. The beverages business, which includes Dr Pepper and Seven Up, will be separated from the confectionery division, ending four decades as a combined company.

The soft drinks business is estimated around £7bn while the confectionery unit is valued at £9bn. The combined company currently has a stock market value of £12.6bn.

Although a sale of the beverages business is seen by analysts as the most likely option, the company said it has not decided whether the unit would be sold or floated separately in the US. The company will make further detailed announcements in June. The private equity houses Kohlberg Kravis Roberts, Lion Capital and Blackstone are all said to be interested in Cadbury's beverages business. Analysts say the confectionery business too could be snapped up. The food group Kraft is being mooted as a potential buyer, along with US confectionery company Hershey.