The 220-acre site in Keynsham, Bristol is expected to be converted into 600 homes, reports the BBC.
The Somerdale site was closed shortly after Kraft acquired Cadbury in February 2010.
The company was censured by the UK’s Takeover Panel in May that year because it had given assurances that the Somerdale plant would remain in operation, but it instead moved production to Poland one week after the acquisition.
The closure resulted in 600 job losses.
ConfectioneryNews.com asked Kraft Foods to confirm reports of the sale.
The company said in a statement: “We have always said we will announce the successful developer in due course and that remains the case. We will, of course, ensure that all parties, including local residents, are kept fully up to speed when we are in a position to make an announcement.”