THOUSANDS of Safeway workers across Kent face months of uncertainty following a £2.9 billion bid by the Morrison supermarket chain.

Around 1,200 jobs will go nationwide if the takeover goes ahead. It is thought many of these will be at Safeway’s head office in Hayes, Middlesex, which will close in 2005.

Morrisons claimed that the bid, agreed by the Safeway board, would “create a new dynamic force in UK food retailing.” A merged company would have combined sales of more than £12.6bn, a 16 per cent market share, and 598 stores.

Safeway operates a number of stores across the county and an award-winning distribution depot in Beddow Way, Aylesford, employing around 1,100 people. The depot supplies more than 100 stores in London, the south east, the Channel Islands and even Gibraltar.

A Safeway spokeswoman said she did not know at this stage how many jobs, if any, would go in Kent and Medway. Local managers were told not to speak to the press.

It is understood that local employees first heard about the surprise move through the media. The merger remains subject to shareholder approval but could be completed by next Spring.

Morrison’s move follows months of speculation about the under-performing Safeway supermarket chain that is the fourth largest in the country but has struggled to keep pace with tough competitors such as Tesco and Asda.

Morrisons, the UK’s fifth grocery retailer, is strong in the North while Safeway is strong in the South.

Carlos Criado-Perez, Safeway’s Argentinian chief executive, will step down if the takeover goes ahead. He is credited with improving Safeway’s fortunes with promotional offers and saturation leaflet distribution.

During a visit to Aylesford in July 2001 to receive the Queen’s Award for Enterprise, he paid tribute to the efforts of local staff in helping transform Safeway’s fortunes.

The award marked five years of “outstanding performance in supply management.”

Sir Kenneth Morrison, executive chairman of Morrisons, said: "Merging with Safeway will allow Morrisons to accelerate the roll-out of its successful retail franchise across the UK, providing consumers with a distinctive offering and unlocking the benefits of scale for our combined shareholders."

Safeway chairman David Webster said: "In the last three years Safeway has turned around, adding 1.5 million customers and rebuilding profits. As our market place becomes increasingly competitive, a merger with Morrisons offers the best means of accelerating growth and delivering greater value for customers and shareholders."

Mr Criado-Perez said: "I am very proud of what the Safeway team has achieved over the last three years.

“This merger provides a fast route through the next stage of our strategy to increase the profitability of the portfolio. I have enormous respect for Ken Morrison and his team and I wish the merged group every success."