NEWS of a £2.9bn agreed takeover of Safeway by Morrison's supermarkets has caused concern in Darlington.

The town has five major supermarkets - two belong to Morrison's, two to Safeway and one to Asda.

The merger, due to be complete around the end of the summer, will put four out of the five supermarkets in the hands of just one retailer.

Coun John Williams, leader of Darlington Borough Council, yesterday said he had serious concerns about jobs, store closures and the effect a monopoly may have on local prices.

"I am seeking assurances from Morrison's that the merger will not result in store closures across the town," he said.

"Safeway and Morrison's are major employers in the town and any store rationalisation could hit Darlington workers and shoppers hard.

"I'm also concerned that they will be in effective control of a huge part of food retailing in Darlington. Morrison's has a good balance between quality and prices now and I want to be assured this will remain."

Albion Small, president of Darlington Chamber of Trade, welcomed the news, however.

He said: "I think this will bring a stronger choice and lower prices for shoppers because of the effects of mass bulk buying."

The move saw shares in Safeway rocket yesterday as details of the takeover emerged. Morrison's shares fell, however.

Bradford-based Morrison's will move its trading format into all Safeway stores above 25,000 sq ft, giving the group a market share of 16.1pc and combined sales of more than £12.6bn.

The future of smaller stores like Safeway in Cockerton remains uncertain, but Sir Kenneth Morrison, executive chairman of Morrison's, indicated they could become community supermarkets like those operated by Tesco.

Mr Small added: "Supermarkets have gone from one extreme to another. All around the country, smaller outlets are being bought up by supermarket giants to run as community stores.

"I am sure Cockerton store is in a good position for this to happen."

* The Safeway store in Barnard Castle was this week advertising for staff as part of an expansion programme and shake-up of departments.