Shares in Hershey Jump Following Reports of Cadbury Buy-out

Shares in US chocolate maker Hershey have jumped by more than 10 per cent after a report that Mondelez International, which owns UK-based Cadbury, has approached the firm about a potential buyout.

The BBC is reporting that a deal could create a snack food giant with combined sales of almost US $50 billion a year.

Both Mondelez and Hershey declined to comment on the report.

In 2016, Hershey rejected a US $23 billion takeover offer from Mondelez.

The approach is still in the preliminary stages and it is not certain that talks will lead to a deal, according to Bloomberg.

Any deal would need the approval of the Hershey Trust Company, a charitable trust, that maintains voting control over the business.

It has previously blocked the takeover of the firm.

A merger of the two companies could bring some of the world’s best-known confectionary and snack foods under one roof.

Hershey is known for brands including Hershey’s Kisses and Reese’s Peanut Butter Cups.