Nestle would explore strategic options, including a possible sale, for its U.S. chocolate and candy business. The chocolate major Hershey will be submitting an initial bid for Nestle’s US confectionery…

Nestle would explore strategic options, including a possible sale, for its U.S. chocolate and candy business.

The chocolate major Hershey will be submitting an initial bid for Nestle’s US confectionery business. Ferrara Candy is also expected to put forward an introductory offer.

Both will face competition from other buyers, including private equity firms. Nutella-owner Ferrero has also been eyeing the company.

Nestle would explore strategic options, including a possible sale, for its U.S. chocolate and candy business. The business on the block has annual sales of 900 million Swiss francs ($924 million). It is expected to be valued at $2 billion to $2.5 billion.

Hershey, the maker of Reese’s, Twizzlers and its eponymous bars and Kisses, is the leading player in the U.S. chocolate and candy industry market.

Hershey recently appointed Michele Buck as its new CEO, under whom the company is said to be looking to cut costs and improve profit margins.