A Kraft takeover of Cadbury would mean that the Sage of Omaha will become the king of sweets, with significant investments in two leading confectionery companies.

Warren Buffett - Kraft's largest investor holding a 9.4 per cent stake - was behind Mars' purchase of chewing gum maker Wrigley last year. Berkshire Hathaway backed Mars with debt to fund the acquisition as well as taking an equity stake in the combined business.