NORTHFIELD, ILL. — The board of directors of Kraft Foods Inc. has approved the spin-off of the company’s North American grocery business and declared a pro rata distribution of shares of Kraft Foods Group, Inc., which will hold the North American grocery business, to holders of Kraft Foods Inc. common stock.

The spin-off is set to be finalized at 5 p.m. E.D.T. on Oct. 1 through a pro rata dividend of all outstanding shares of Kraft Foods Group common stock. On the distribution date, each Kraft Foods Inc. shareholder will receive one share of Kraft Foods Group common stock for every three shares of Kraft Foods Inc. common stock held by shareholders on the record date.

Additionally, the board declared a regular quarterly dividend of 29c per share of Kraft Foods Inc. common stock. This cash dividend is payable on Oct. 15 to shareholders of record as of the close of business on Sept. 19.