Mergers, Acquisitions and Takeovers Case Study

Cadbury Schweppes: Demerging its US Beverages Company

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Abstract:
London-based Cadbury Schweppes Plc. (Cadbury), a confectionery and beverages company, has planned to demerge its US beverages arm in the second quarter of 2008. The decision of the company comes after its investors expressed concern about the company’s financial performance despite loads of restructuring since 2003. While the top management and investors are optimistic about the company’s move, the success of the strategy remains to be seen.

Pedagogical Objectives:

• This case study is aimed at MBA/PGDBA students and is intended to be a part of the business strategy curriculum
• The case study is so structured as to help students understand about a demerger and its ideal timing
• Students are also expected to understand the need of demerger for Cadbury
• This case study gives scope to discuss whether the timing is right for Cadbury to demerge.

Keywords : Cadbury; Beverages; Confectionery; Corporate image; Demerger; Decision; Spin-off; Diversification Strategies; Bottling; Chocolate; Cost; Investment; Mergers,Acquisitions,Alliances Case Studies; Growth; Loss

Contents : 
Cadbury Schweppes: Why Demerge?
The Cadbury Demerger: Is it the Time or is it Too Late?
Cadbury Group’s Revenues and Profits