Morrisons, which has a wholesale supply deal with McColl's, said it will acquire all of it 1,160 stores which include 270 Morrisons Daily format stores.

All McColl's 16,000 staff will be transferred with the McColl's business to Morrisons, while McColl's two pension schemes will be taken on by the supermarket chain.

(Reporting by James Davey; Editing by Alistair Smout)