SUPERMARKET chain Asda is expected to press ahead with major expansion plans if it is given the go-ahead to take over a store.

The supermarket chain announced plans to buy Danish discount retailer Netto's UK stores for £778 million in May.

The deal is subject to the approval of the Office of Fair Trading (OFT) and a decision is expected within weeks.

Speculation that the Netto store in Springfield Road, Leek, is on Asda's wanted list was sparked by planning applications by the chain to refurbish the store.

The plans include a cash machine, refrigeration plant and air conditioning units.

Community leaders in the Moorlands are expecting the re-branding to go ahead because of the potential to expand on to neighbouring land.

But High Street businesses already fighting plans by Sainsbury's for an out-of-town development fear it could be another threat to trade.

A Save Our Leek campaign was launched by Richard Wilson, who is a cashier at the Bridge End garage, in Macclesfield Road, near the proposed Sainsbury's site.

Mr Wilson, aged 49, from Spring Gardens, Leek, said: "All we know is that Asda wants the Netto group and it is now with the OFT.

"If it goes ahead, it would be another out-of-town supermarket with the potential to expand on to adjacent industrial premises.

"We would have the same concerns as with the proposed Sainsbury's development.

"They are one of the big four who draw people like flies to a jam jar."

Leek Councillor Steve Povey said: "I am aware of the speculation and if it goes ahead it is likely to be a very busy store. The existing Netto store is very popular.

"I would not like it to be so big that it takes away life from the town centre."

Councillor Andrew Hart, cabinet member for regeneration on the district council, said the authority had not been notified of Asda's intentions for the Leek site.

He said: "We live in interesting times. The supermarket retailers are in turmoil at the moment.

"We have not yet got a clear indication of what the policy and strategy of Asda is.

"We will be strongly monitoring the situation to see whether the national trends affect Leek."

A spokesman for Asda refused to confirm the Leek store was on its target list.

She said: "We are still awaiting OFT approval. We intend to keep as many stores as possible as Asdas, but we cannot confirm specifics at the moment."

It is unclear what will happen to branches in locations that already have an Asda nearby, such as Tunstall and Wolstanton.

Netto also has stores in Fenton, Cheadle and Market Drayton, while Asda has supermarkets in Stafford and Crewe.

The Netto stores that are refurbished as Asdas will employ up to twice as many people and should be converted by the middle of next year.

The Government is expected to rule 30 of the shops should be sold to other chains to maintain competition.