Safeway shareholders have confirmed that Sir Ken Morrison's recommended £3 billion bid for the troubled group was just about acceptable, clearing the way for a deal early next year.

Morrisons is now preparing to get the real work underway. Sir Ken has confirmed that price cuts would be both deeper and introduced sooner than originally planned.

Sir Ken said trading at Safeway had deteriorated badly and the group was losing market share. This means he had to act more quickly than he had planned.

Shoppers are expected to see Safeway prices fall about 6 per cent rather than the 5 per cent that was initially planned. Morrisons will scrap Safeway's current price promotions and will replace them with its own longer-term low prices on key prominent consumer brands.

All stores will adopt Morrisons full pricing structure as they are rebranded ñ a process expected to start in the middle of next year and to take two and a half years.

Sir Ken also hinted that the group may sell off up to 138 additional smaller Safeway stores. He also confirmed that 1,200 Safeway staff would lose their jobs ahead of the closure of the group's Hayes head office.

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