British confectionery maker Cadbury has agreed to sell its Australian drinks arm Schweppes Beverages to Asahi Breweries of Japan for £550m (€580m).
The London-listed group, which makes Dairy Milk chocolate and Trident chewing gum, began a strategic review of the Australian division in July as it sought to concentrate on the confectionery market.
The deal could be scuppered by US drinks giant Coca-Cola, which has held a right of negotiation with Cadbury since it tried to purchase the business in 1999. Coca-Cola has until March 2009 to decide whether to make an alternative offer for the unit.
Schweppes Australia is the second largest non-alcoholic ready-to-drink beverages business in Australia. Cadbury was formerly known as Cadbury Schweppes until it demerged its Americas Beverages division in May. The US business, which has been renamed Dr Pepper Snapple Group, is now listed on the New York Stock Exchange.
