sounds OK as long as they consult you and give you the options.
You should be entitled to the following - your salary for the new role should stay the same as is now (ie not drop) for a fixed period at least as long as your notice period - probably more.
You should automatically get the old job in the new location if you are willing to relocate (though they are not obliged to assist your costs)
You should be given at least your standard notice period before the changes take efffect.
You should be given the opportunity to ask questions and a fiar amount of time to consider options.
They could have made you reapply for the new job, so it sounds like they've been very fair indeed by offering it to you already.