Unite is cautiously optimistic that Saputo is seeking to develop Dairy Crest’s operation in the UK over the long-term. Unite is now seeking an urgent meeting with the senior management at Saputo to receive detailed information about the company’s plans and secure assurances about employment levels and a commitment to maintaining an existing plants.
Dairy Crest has told BBC Surrey that "virtually" all its 1,100 jobs in the UK are safe, including the 150 at its head office in Surrey, which is still set to move from Claygate to Weybridge in the next few weeks.
The FTSE 100 is little changed in early trading up 13 points at 7,180.97.
Pearson, which published results earlier, is the biggest riser with a gain of more than 3%,
Centrica, which plunged yesterday, is once again one of the biggest fallers. It is down 1.5% while Barclays, which reported results on Thursday, is off 1.7%.
In the FTSE 250, Dairy Crest is up 12% after agreeing to a £975m takeover.
The biggest faller, down nearly 5%, is CYBG which did not receive any of the RBS funds being released to bolster competition in banking.
Stephen Alexander, chairman of Dairy Crest, said the board was recommending the offer from Saputo.
"Dairy Crest is a leading UK dairy company and the proud manufacturer of Cathedral City, the largest UK cheese brand. Saputo is one of the top ten dairy processors in the world. Both companies have built strong positions in the cheese sectors in their respective home markets," he said.
Saputo Group - based in Montreal - does not currently have any operations in Europe and says that under its ownership Dairy Crest would continue to manufacture its products from its existing facilities in the UK.
The Canadian group has 15,000 employees, operates 62 plants and sells its products such as Devondale and Frigo Cheese Heads in more than 40 countries.
Dairy Crest, maker of Cathedral City cheese, has also received a takeover bid.
It has agreed to a deal which will value each of its shares at 620 pence in cash - valuing the business at £975m.
The bid is by Canada's Saputo.
Dairy Crest admitted "the butter market remains challenging", when delivering a trading update for the three months until the end of June this morning.
The company said revenues at its two largest brands, Cathedral City and Clover, both grew by 10% and that full year expectations "remain unchanged".
Boss Mark Allen said the firm "expect to announce several new product launches before the end of 2018".
Political Reporter, BBC Radio Cornwall
Some dairy farmers in the South West which supply the Davidstow creamery say they hope investment at the plant will mean more stable pricing for them.
Dairy Crest is investing £75m to increase production at the plant.
The firm says it will be able to process an additional 200 million litres of milk a year at the site and that it is good news for more than 300 farmers who supply them.
Gemma Smale-Rowland is a dairy farmer near Launceston...
What we are really keen to do here at Dairy Crest is to add value to the milk that they sell us and if we can add value to it, and we have a long track record of being able to do that, we can add value to it and therefore we can pay them a fair market-related price that's a bit more than our competitors, so they do a bit better than the farm down the road."