Kroger Co. Inc. (Cincinnati), the nation’s largest supermarket retailer, is reportedly interested in buying all or part of Safeway Inc. (Pleasanton, Calif.), the second-largest chain.
According to Bloomberg News, Kroger has contacted Cerberus Capital Management LP (New York), which is the lead bidder for Safeway, about buying some stores that Cerberus may not want. Cerberus led the investment group that acquired the Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market grocery store chains from SuperValu Inc. (Eden Prairie, Minn.) last year for about $3.3 billion.
Private-equity firms CVC Capital Partners Ltd. (London) and Leonard Green & Partners LP (Los Angeles) have also expressed interest in buying parts of Safeway. They jointly own big-box wholesale chain BJ’s Wholesale Club Inc. (Westborough, Mass.).
Safeway has indicated a preference to be sold as a whole, Bloomberg was told.