Bosses at the Kenco coffee factory say it is “business as usual” after it was announced the firm would be merged with a rival.

Plant owner Mondelez International has announced it wants to combine its coffee arm with Douwe Egberts Master Blenders to create the second biggest coffee company in the world after Nestle.

Almost 600 staff work at the plant which is the largest of its type in Europe.

Asked about job security, spokesman Josephine Bradley said: “No business can offer guarantees, but we are confident Banbury will have a key role to play in the business.”

Unite union national officer Rhys McCarthy said: “Over the coming days we will be seeking guarantees over jobs.”