The future of 300 jobs at Esher's Dairy Crest operations is in doubt after it agreed to sell for about £80m in cash.
Dairy Crest announced on Thursday, November 6, it could be combined with Muller UK and Ireland Group (Muller).
The sale is conditional to approval, and is expected to take several months.
Esher has not been mentioned in the statement Dairy Crest sent out, with a number of manufacturing sites earmarked to be retained by the company, leaving the 300 jobs on uncertain ground if the sale goes through.
Mark Allen, chief executive of Dairy Crest, said: "Completing this transaction would be a positive development for Dairy Crest and for the UK dairy industry.
"The combination of our Dairies operations with those of Muller Wiseman Dairies will create efficiencies of scale that will help to create a more sustainable UK dairy sector that is better placed to compete on the global stage."
"In the months ahead we will do all we can to minimise the uncertainty that we know today's news will bring for many people associated with our business."
The move, if it takes place, will allow Dairy Crest to focus on its cheese and spread operations.
Current operations process and deliver about 1.3bn litres of milk a year.
A spokesman for Dairy Crest stressed the sale was not certain at present.
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