The proposed merger between Express Dairies and dairy group Arla could result in job losses.
Chief executive at Express Dairies, Neil Davidson, told the Daily Telegraph that the job cuts could run into “a number of hundreds”.
Express also revealed that it had launched an £11.5m claim against supermarket group Safeway for cancelling a milk supply contract 15 months early.

The Scotsman said Express has blamed the loss of the deal with Safeway for denting the chances of its Scottish operations returning to profitability next year.
Davidson told The Scotsman: “We took action 12 months ago to set Claymore back on track, revamping the whole depot network. The plan was that it would reach break-even next year. Were it not for the loss of the Safeway business, which we are now disputing in court, we believe we would have achieved that."
Express had a deal to fulfil about 15% of Safeway’s milk requirements. In Scotland, Claymore’s share of the Safeway work has gone to rival Robert Wiseman, the paper said.