TESCO has confirmed it is buying the former Safeway stores in Ingleby Barwick and Redcar.

The disposal is the latest move by Morrison's to sell off stores it acquired through the take over of Safeway earlier this year. To comply with a ruling by the Competition Commission, Morrison's was told to sell 52 stores.

Anthony Platts, retail expert at Tees Valley investment managers Wise Speke, said: "We have known for some time that the lucrative store at Ingleby Barwick was to be sold to Tesco, but negotiations seem to have dragged on for an eternity.

"Tesco might just have found itself a little gem with the purchase of the Ingleby Barwick store.

"In a perfect world for Morrison's, it would have preferred to keep the store, but with a similar sized store at Teesside Park this was not to be allowed."

Bob Stott, Morrison's joint managing director, said: ''Our integration of the Safeway business is progressing and the announcement is a further step in the overall process."

The group said it would give further details, including the amount received for the stores, once the sale was completed.

The sale to Tesco is subject to approval by the Office of Fair Trading.