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

A deal could make a snack food giant with combined sales of almost $50bn (£39.2bn) a year.

Both Mondelez and Hershey declined to comment on the update when contacted by BBC information.

In 2016, Hershey rejected a $23bn takeover propose from Mondelez.

The way is still in the preliminary stages and it is not sure that talks will navigator to a deal, according to Bloomberg.

Any deal would require the approval of the Hershey depend corporation, a charitable depend, that maintains voting control over the business. It has previously blocked the takeover of the firm.

A combination of the two companies could bring some of the globe’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.

As well as owning Cadbury, Mondelez brands include Ritz crackers, Oreo biscuits and Toblerone chocolate.

The packaged food industry has faced slowing growth as consumers feel the pinch from years of rising prices.

Chocolate companies in particular have had to transfer costs from higher cocoa prices to their customers.

Last month, Hershey cut its profits and boost forecasts. Its chief monetary officer, Steve Voskuil, said high cocoa prices will be the “biggest source of worth rise” for the firm going forward.

Another food giant, Kraft Heinz, also recently cut its annual sales and boost forecasts as customers cut back on purchases after several rounds of worth rises.

Some companies have looked for deals to secure recent markets and boost growth.

In August, confectionery giant Mars struck a deal to snap up Pringles and Pop-Tart-maker Kellanova for almost $36bn.

Some analysts have projection an boost in mergers during the upcoming Trump administration, as the president-elect is seen as more amiable towards deal making.