Apparently Ritz crackers and Kraft cheese no longer make great companions.

Kraft Foods Inc. (NYSE:KFT) announced plans Thursday to split its North American grocery business, which includes Kraft cheese and Oscar Mayer bologna, from its global snacks group, consisting of Nabisco cookies and crackers and Cadbury chocolate.

After levering itself with almost $12 billion in debt as a result of its $19.5 billion acquisition of Cadbury plc just 18 months ago, Kraft's move to spin off its North American grocery business might allow the food behemoth to free-up debt capacity in its snack food business to make more acquisitions, explained an industry banker.

The banker said Kraft would likely load up its North American grocery business with a majority of the debt.

Kraft's long-term debt was about $24 billion as of March 31, 2011, according to a filing with the U.S. Securities and Exchange Commission. The rationale behind the Cadbury deal was not just that it was a play for a global brand and a confectionery business, but that it also provided a platform for international growth, particularly in emerging markets, the banker said. Kraft could look to boost this platform by acquiring more global brands, particularly in emerging markets.

Kraft has not been shy about the fact that it has been pursuing a strategy to focus on global brands, slowly ridding itself of domestic brands. One of those divestitures was Post Cereals, which Kraft sold to Ralcorp Holdings Inc. (NYSE:RAH) in November 2007 for $2.6 billion. While well known in the U.S., several of Kraft's domestic brands, such as Philadelphia cream cheese and Jell-O, have little appeal in other countries.

In splitting itself up, Kraft loses some of its ability to weather uncertain economic cycles. The marriage of its high-growth snack business and slow-growth, but high cash-flow grocery business has allowed the company to weather the global recession. Historically, companies that are nimble have been valued more highly by investors during uncertain economic times.

However, according to the industry banker, Kraft shouldn't have to provide its investors with that kind of diversification. Shareholders can achieve that by diversifying their own portfolios, the banker said. The banker also emphasized there are few synergies between the two businesses that Kraft is splitting, so Kraft lacks the strongest argument for keeping the company together.