Shares in US chocolate maker Hershey have jumped by more than 10% after a report that Mondelez International, which owns UK-based Cadbury, has approached the firm about a potential buyout. A deal could create a snack food giant with combined sales of almost $50bn (£39.2bn) a year.

(Reuters) -Cadbury-parent Mondelez International is exploring the acquisition of chocolate maker Hershey, Bloomberg News reported on Monday, citing people familiar with the matter, in what would create one of the world's largest confectioners.

If Mondelez's move succeeds, it would create one of the world's largest confectioners and bring favourites such as Dairy Milk and Reese's Pieces together.