Woolworths confirms plan to split from its liquor business Endeavour Drinks

Woolworths has confirmed it intends to spin off its liquor and gaming business Endeavour Drinks.

The major supermarket chain first flagged the plan in mid-2019 and on Monday revealed it had taken the final steps to demerge Endeavour from the parent company, saying the split into two entities was “preferable to other available options”.

Endeavour Drinks consists of Dan Murphys, BWS and a pokies business.

Woolworths chief executive Brad Banducci said the demerger would create two strong publicly-listed companies.

“The Woolworths Group board believes that a demerger of Endeavour Group will enhance shareholder value and it will create two leading ASX-listed companies,” Mr Banducci said.

“We believe both businesses, post demerger, have strong future prospects and will benefit from greater simplicity, focus and ongoing partnership.”

The plan will be voted on by shareholders at a general meeting on June 18.