SUPERMARKET giants Tesco have struck a deal to buy Safeway stores in St Helens town centre and Newton-le-Willows.

Though still signposted as Safeway stores, the supermarkets at Chalon Way, St Helens and Earle Street, Earlestown have been under control of Morrisons following a takeover of the chain in March.

Under terms of the takeover, the Office of Fair Trading stipulated 52 Safeway stores must be sold to other food retailers to meet competition laws.

With two Morrisons stores already in the borough, the St Helens Safeway stores were picked as two which had to be sold by the end of this year.

This week, Wm. Morrison Supermarkets Plc announced the two stores were among 10 they had agreed to sell to Tesco.

Tesco had made no secret of their desire to locate in St Helens. They dropped plans for a store in Atlas Street in the face of fierce opposition from nearby Fingerpost traders and a decision by the Government to 'call in' the proposals for a public inquiry, but have always maintained they were looking to locate in the borough.

Existing staff from Safeway will transfer to Tesco when the deal goes through.