The American snack group which owns Kettle Foods is set to be bought in a $4.87bn deal – by Campbell Soup Company.

Snyder's-Lance bought Kettle's previous owner Diamond Foods in 2016 and has now been acquired in turn by the soup brand made iconic by Andy Warhol.

It marks a return to Norfolk for Campbell which had a factory at King's Lynn from 1959 until 2007.

The deal will create a snacking portfolio with nearly $4.7bn net sales per year. Campbell has said it expects to make $170m in cost savings through synergies between the two businesses.

Denise Morrison, Campbell's president and chief executive, said: 'This acquisition will dramatically transform Campbell, shifting our centre of gravity and further diversifying our portfolio into the faster-growing snacking category. We look forward to welcoming Snyder's-Lance's employees and their trusted family of leading brands to our company.'