Hershey’s controlling owner is understood to have rejected the preliminary takeover offer from Mondelez International.

According to Bloomberg News, The Hershey Trust Company, who’s approval will be key in any acquisition deal, labelled the offer from the Cadbury-owner as too low.

Earlier this week it emerged that Mondelez had made a preliminary approach to Hershey about a possible combination, however, talks were in early stages.

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Last month, the US confectionery giant reported its quarterly sales had fallen to nearly $3bn (£2.3bn) amid weaker demand, while Mondelez saw an almost 2% increase in sales to $9.2bn (£7.2bn).

It is not the first that Mondelez has sought to acquire Hershey, with the brand rejecting a $23bn (£18bn) takeover bid in 2016 labelling the offer as too low.

The latest news comes as Mondelez has announced a share buyback programme of up to $9bn (£7bn) effective from 1 January and will last through to the end of 2027, sparking further doubts around a takeover deal.

It replaces an existing $6 (£4.7bn) authorisation, which has around $2.8 (£2.2bn) left that would expire at the end of 2025.