"The food giant said on Thursday that it planned to split into two businesses. Kraft will spin off its North American grocery business — home to familiar brands like Velveeta, Kraft macaroni & cheese and Oscar Mayer meats — to its shareholders. It will hold onto its global snacks business, with brands like Oreos, Cadbury and Trident.
By cleaving itself in two, the company is essentially letting shareholders choose between the fast-growing snacks business or the grocery business, which generates a lot of cash and enjoys strong profit margins despite its lower growth."
Well we now have the best example of a spin-off I have seen in several years and even the "why". Will definitely be discussed in the coming Corporate Finance classes.
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