Morrisons has beaten EG Group in the battle to buy collapsed convenience chain McColl's, saving 16,000 jobs, the supermarket has said.

It added that Morrisons will take over the company's two pension schemes.

The convenience chain fell into administration on Friday, plunging the future of its 1,160 shops and 16,000 staff into doubt.

It came after the UK's fourth-largest supermarket chain and forecourt giant EG Group both tabled final offers on Sunday to secure a rescue deal for McColl's.

EG - whose owners also run supermarket giant Asda - had initially been favourites to complete a rescue deal for McColl's.

READ MORE: Final bids tabled to take over McColl's

Morrisons' early approaches had reportedly been rejected by lenders who preferred EG's offer to instantly repay more than £160 million in debts from McColl's.

However, it is understood that Morrisons' successful move will also repay the lenders in cash.

David Potts, Morrisons chief executive, said: "This transaction offers stability and continuity for the McColl's business and, in particular, a better outcome for its colleagues and pensioners."