Food manufacturer Kraft is understood to be in negotiations to snap up the biscuit and cereal division of French group Danone.
The Financial Times has reported that the two groups are in talks, but neither firm have commented on reports.
The acquisition would see Kraft adding brands such as Tuc, LU and Prince to its portfolio, which already includes Oreo cookies and Ritz crackers, and see it confirm its position as the world’s largest biscuit maker.
Danone’s biscuits and cereal products arm, which is the weakest of Danone’s three businesses, posted a turnover of £1.48bn in 2006.
In 2004, Danone offloaded its British and Irish biscuits businesses, which included cracker brand Jacob.
Kraft’s other key brands include Vegemite, Dairylea, Toblerone and coffee brand Maxwell House.
