Muller Dairy has offered to process up to 100 million litres of milk for a rival, as it looks to allay competition issues around its acquisition of Dairy Crest.
The company is offering around a fifth of the processing capacity of a Dairy Crest-owned site in Gloucestershire.
The German firm plans to swallow up an £80m portion of Britain’s milk market but the merger was referred to the UK’s competition authority in March.
The referal came four months after the dairy giant acquired rival Dairy Crest’s struggling operations.