Oasis and Orangina are two of the brands being sold

It is being bought by private equity firms Blackstone and Lion Capital.

Cadbury's European Beverages brands include Orangina, Oasis, Schweppes, La Casera and TriNa.

For the deal to be completed, UK-based Cadbury will have to consult with employee representatives in France, Germany and Belgium.

It first announced its intention to sell off its European drinks arm back in September.

'Refocus'

The price being paid by Blackstone and Lion Capital is towards the upper end of analyst predictions.

Following completion of a deal, we will be able to focus on our faster growing confectionery and other beverage businesses Cadbury's boss Todd Stitzer Check Cadbury's share price

Cadbury's European Beverages arm employs 3,000 people and has bottling plants in Germany, Spain, Portugal and Belgium.

Around 85% of its sales are in France, Spain and Germany, with a small amount of business in the UK.

Cadbury's sold the majority of its drinks business in the UK to Coca-Cola in 1999.

"I'm delighted that within such a short time we have achieved a firm offer for Europe Beverages at a price which reflects the quality of its brands and the strength of its management team." said Cadbury Schweppes chief executive Todd Stitzer.

"Following completion of a deal, we will be able to focus on our faster growing confectionery and other beverage businesses."

Takeover target?

Last month Cadbury warned that group-wide it was unlikely to meet its profit margin forecasts for this year.

Analysts broadly welcomed the sale, but some said a streamlined Cadbury's, which keeps its Dr Pepper and 7UP brands, may now find itself an attractive takeover target for such US firms as Kraft Foods or Hershey.