Morina Baie Biscuits is in talks to acquire the French subsidiary of German bakery group Bahlsen.
If the acquisition is successful it will take effect at the end of the year and would mean Morina Baie Biscuits, which has annual sales of €106m, doubling in size and substantially increasing its market share.
But France's biscuit sector could soon be in for a slump given anti-obesity guidelines brought in this month.
Under the Programme National Nutrition Santé (PNNS) the health ministry are seeking encourage the French population to avoid sugary or fatty foods in favour of fruit and vegetable snacks.
Morina Baie produces biscuits and cakes while German subsidiary Bahlsen Saint Michel is one of France's foremost cookie producers.
Bahlsen, who also own the Leibniz brand and produce a range of Christmas-only products, said this week it was intending to sell off its French business in order to concentrate on the company's "prominent European marks."
The group, who produce own-brand pastries, cakes and biscuits, are market leaders in Germany's sweet biscuit sector and recorded an annual turnover of €525m last year - a 3.5 per cent drop from 2004.