Cadbury Schweppes' demerger of its confectionery and US soft drinks businesses could cost more than £1bn, analysts have predicted.

The costs represent almost 10% of the market value of the confectionery giant, according to the Guardian.

“The split is not without its costs,” Charlie Mills, an analyst at Credit Suisse told the paper. “Indeed, at every turn it looks to us that the costs are going up. In total we estimate the costs to be just over £1bn. This seems a high price for a bit of focusing.”

Last week, Cadbury Schweppes said the demerger would be completed on 7 May.