SUPERMARKET chain Morrisons has taken over rival Safeway in a move that will change the face of 600 stores across the United Kingdom - including more than a dozen supermarkets in York and North Yorkshire.

The £2.9 billion deal has been spearheaded by owner Sir Ken Morrison, 70, who lives at Myton Hall, near Boroughbridge, the company's former headquarters.

It will bring together 598 stores across the UK from the country's fourth and fifth-biggest supermarket groups, which employ a total of 140,000 staff.

Stores in Acomb, Malton, Pickering, Ripon, Scarborough, Selby and Tadcaster are expected to be among the larger stores rebranded to operate under the Morrisons name.

But some of the smaller Safeway operations, such as those in Bridlington, Harrogate, Haxby, Northallerton, Pocklington and Whitby, may remain unchanged.

Sir Ken, executive chairman of Morrisons, said there will be no job losses at Morrison supermarkets as a result of the move, which could instead see a number of new stores opened, creating 3,000 to 4,000 shop jobs.

A Safeway administrative centre near Tyneside, however, employing 300 to 350 staff, has been placed "under review", he said, and the chain's head office, in Hayes, Middlesex, is to be run down, with an expected eventual loss of 1,200 jobs.

Sir Ken said: "Merging with Safeway will allow Morrisons to accelerate the roll-out of its successful retail franchise across the UK, providing consumers with a distinctive offering and unlocking the benefits of scale for our combined shareholders."

David Webster, chairman of Safeway, said: "In the last three years Safeway has turned around, adding 1.5 million customers and rebuilding profits.

"As our market place becomes increasingly competitive a merger with Morrisons offers the best means of accelerating growth and delivering greater value for customers and shareholders."

Morrisons, based in Bradford, is the UK's fifth largest food retailer, with 119 stores, mainly in the northern half of England.

The move will create a "dynamic national supermarket group" valued at £5.5 billion, with combined sales of more than £12.6 billion, selling space of more than 14 million square feet and a market share of 16.1 per cent.

Updated: 11:16 Thursday, January 09, 2003