Cadbury Schweppes yesterday looked set to raise £109 million following an agreement to sell its South African drinks business Bormor.
The London-based confectionery giant put Bormor up for sale in February at the same time as it agreed to buy South Africa's leading chewing gum business from Dan Products for £33 million.
Tiger Brands, a food and healthcare company that operates mainly in emerging markets, will buy Bormor subject to clearance by South African authorities.
"The acquisition of such wonderful brands as Energade and Oros adds to the basket of leading consumer brands owned by Tiger and is an important complementary strategic fit," Tiger Brands chief executive Nick Dennis said.
Tiger Brands manufactures popular South African foods such as Jungle Oats and Tastic rice and is also the country's largest grain trading business. The company also has healthcare interests, selling drugs and hospital products.
In 2005, Bormor achieved revenues of £74 million from sales of concentrate and other drinks in South Africa.
The move for the Dan chewing gum business will give Cadbury a business best known for its Stimorol and Dirol brands. It had revenues of around £9 million in 2005.
Cadbury's brands include Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne and Bassett. It employs around 50,000 people, including a large workforce at its Bourn-ville factory in Birmingham.
Around 80 per cent of Cadbury's sales and profits are generated outside the UK.
Yesterday's deal comes after Cadbury completed the sale of its European drinks unit making Orangina and Oasis for 1.85 billion euros (£1.27 billion) to a private equity consortium.
