MALVERN'S Safeway supermarket is to be re-named Morrisons and re-branded after the chain was bought out its smaller rival yesterday (Thursday).

Morrisons, the successful Bradford-based supermarket group, has made an agreed £2.9 billion bid for Safeway, which is around four times its size.

The deal has been accepted by both firms but still requires formal acceptance by shareholders.

Gillian Hall, public relations controller at Morrisons, confirmed that all Safeway stores larger than 15,000 square feet will be re-named.

The rebranding will also see stores decked out in Morr-isons' distinctive yellow and black livery.

Malvern's Roman Way store has a sales area that covers nearly 34,000 square feet.

However, she said it was impossible to say when the changes will take place, as the deal is yet to be fully confirmed.

"It's not right to speculate at this stage," she said. "We will be keeping people informed as it progresses."

The Malvern store employs around 250 people and its owners handed a request for planning permission to extend it to Malvern Hills District Council last month.

Job losses and store closures are not expected as a result of the merger, as the two companies are based in different parts of the country.

Safeway has many stores in the south and Scotland, whereas Morrisons is well-established in the north.

The nearest Morrisons store to Malvern is 19 miles away in Small Heath, Birmingham.

The deal will create a supermarket chain with 598 stores nationally, giving a total turnover of £12.6 billion and a market share of 16 per cent.

The chain will aim to compete with established supermarket giants Asda, Sainsbury and Tesco, and Morrisons says the deal could see prices at the Malvern store drop as a result of economies of scale.