Müller Dairy’s German parent company Unterneh-mensgruppe Theo Müller is rumoured to be planning a US joint venture with PepsiCo to break into the US market with a new yoghurt brand.

Theo Müller said it would not comment on speculation sparked by the Wall Street Journal this month, but details of the deal are expected to be revealed in the coming weeks.

A tie-up between Müller and PepsiCo would allow the German dairy giant to enter the US market and PepsiCo to make its first journey into the US dairy sector.

Müller has form when it comes to international ventures - last September, it revealed it had built a 3.04% stake in the UK’s largest dairy company, Dairy Crest, prompting speculation it was gearing up for a takeover. At the time, Dairy Crest swiftly denied it was for sale.