Cadbury Schweppes has confirmed it will separate its confectionery and Americas beverages businesses.

It follows frenzied speculation that the company was planning to split the groups after it revealed earlier this week that corporate raider Nelson Peltz had acquired a 2.98% stake in the company.

Cadbury's confectionery business includes brands such as Cadbury, Trident, Halls and Dentyne, while Americas beverages includes Dr Pepper, 7Up, Sunkist and Snapple.

“Separating these two great businesses will enable two outstanding management teams to focus on generating further revenue growth, increasing margin, and enhancing returns for their respective shareowners,” said Todd Stitzer, CEO of Cadbury Schweppes.

The board is evaluating the options for separation and further details will be provided in a trading update in June, he added.