NOW that the go-ahead has been given for its bid, Morrisons may be about to take its place among the big three supermarkets - Tesco, Asda and Sainsbury's.

Predominantly northern-based until now, and with a strong presence in the North-East with 15 stores, it can expect to be catapulted into the big league.

And with its three rivals out of the way - Tesco, Asda and Sainsbury's having had their bids rejected by the Government - it is also free to seal a deal of its own making and not be forced into a bidding war. Anthony Platts, retail analyst and assistant director at the Teesside office of Wise Speake, said: "They will be getting value for money and paying a normal price with Tesco, Asda and Sainsbury out of the picture.

"The money they are saving they can pass on to shoppers with cheaper prices.

"Savings are likely to be made at head office and on things like distribution and local managers through the merger."

Mr Platts said that shop floor staff at both Morrisons and Safeway should not be badly affected if a £2.9bn deal is sealed.

"They may be offered jobs elsewhere and it is likely anyway that a rival should be able to take on those same staff should they take over a store that closes," he said.

He also ruled out a successful bid from Bhs boss Philip Green as unlikely.

He said: "He does not already own a supermarket. He owns a clothes retailer and there are no obvious synergies there - he cannot merge one part of the business with another to create cost savings in the way that Morrisons can."

Morrisons has been told that it must sell 53 stores around the country to prevent it from having a monopoly in some locations.

The Competition Commission has stipulated that it will be allowed no more than three stores in any one location.

The conditions attached to the go-ahead are not as prohibitive as might have been expected, but will still trouble Morrisons, particularly in towns such as Darlington where there are two Safeway stores and two Morrisons.

Mr Platts said: "Darlington is one of the problem areas for Morrisons and there will be doubts over its store in North Road, which is an old site and has not had much money spent on it. There is also the Safeway at Cockerton. They will have to sell off at least one of these."