There is concern the merger may mean jobs go

The deal with dairy co-operative Arla UK has been given the green light by the competitions minister.

Concern had been raised that the merger would leave just three milk processing companies controlling the market.

But the minister Gerry Sutcliffe now says it will not substantially reduce competition among suppliers.

Stronger group

A "no strings attached" clearance has been given, dismissing earlier indications the two companies may be forced to sell one or more dairies or distribution depots.

Express has admitted the move could well see hundreds of its workforce laid off.

The two companies employ 7,000 people between them.

Neil Davidson, the chief executive of Express, will take up the post in the combined group.

He says the merge will help make a "substantially stronger group".