SUPERMARKET rivals are lining up to buy Safeway stores in the Tees Valley, it emerged yesterday.

Morrisons is believed to be preparing a firm offer for Safeway, ending an 11-month takeover saga.

It is the sole candidate for the business, after three of its rivals failed to pass a competition inquiry, and retail entrepreneur Philip Green dropped out.

But the Competition Commission has ruled there cannot be a Morrisons and Safeway store within a ten to 15 minute car journey of each other, meaning Morrisons would have to dispose of about 52 Safeway outlets.

This includes six in the Tees Valley - two in Darlington, plus others in Guisborough, Ingleby Barwick, Loftus, Redcar and Coulby Newham.

Safeway yesterday announced these sites had already attracted strong interest from potential purchasers.

The announcement came as Safeway unveiled what is expected to be the company's last set of results before being acquired by Morrisons.

Safeway said sales grew 1.2 per cent in the 28 weeks to October 11.

Profits before exceptional items were £173m, down on £187m a year earlier, because of £8m of additional pension costs.