“From a geographic perspective, the move makes sense,” Jack Skelly, an analyst at Euromonitor, told Bloomberg. “Mondelez has achieved its position as the second-largest confectionery manufacturer in the world without any sizable presence in the U.S.”

Related: Sticking With Staples ETFs: Is it a Good Idea?

However, the deal is not set in stone as it would require the approval of the Hershey Trust, which holds 8.4% of the company’s stock and 81% of its voting power. The Trust has also opposed selling the company in the past.

The deal would create the world’s biggest candy-making company as the second- and fifth-largest players combine forces, according to Euromonitor.

For more information on the consumer sector, visit our consumer staples category.

Guggenheim S&P Equal Weight Consumer Staples ETF