Cadbury Schweppes will demerge its US beverages business Dr Pepper Snapple Group from its confectionery business Cadbury on 7 May.

A shareholder meeting will be held on 11 April to approve the demerger, first announced in March last year, the confectionery giant said.

Cadbury Schweppes' net debt will be around £3.2bn immediately prior to the merger. Cadbury will have net debt of £1.65bn and Dr Pepper Snapple Group will have net debt of $3.80bn (£1.9bn). Dr Pepper Snapple Group has signed an agreement with five banks for loans.