US dairy company Kraft Foods has made an offer to buy confectionery company Cadbury for £10.2 bn ($16.7 bn).

Kraft Foods, whose brands include Oreo cookies, Toblerone chocolate and Dairylea cheese, said that the move would protect jobs in the UK and would save Cadbury’s factory in Somerdale near Bristol currently earmarked for closure next year. The firm also added it wanted to create “a global powerhouse in snacks, confectionery and quick meals”.

“We are eager to build upon Cadbury’s iconic brands and strong British heritage through increased investment and innovation. We have great respect and admiration for Cadbury, its employees, its leadership and its proud heritage.” said Kraft chairman Irene Rosenfeld.

Cadbury put out a statement mid-morning, confirming it had received an “unsolicited” proposal from Kraft but they rejected it. “The board of Cadbury reviewed the proposal with its advisers and rejected it,” it said.

Cadbury said the approach “fundamentally undervalues” the company and “strong brands, unique category and geographic scope” left it confident of its future as a standalone firm.