New York -- Private-equity firm Cerberus Capital Management has reached a preliminary agreement to buy Safeway Inc. for over $9 million, the Wall Street Journal reported. The deal is subject to board approval.
As part of the deal, Cerberus would pay roughly $40 a share for Safeway.
The Kroger Co., which recently completed its acquisition of Harris Teeter, reportedly was also interested in making a bid for Safeway. Even if a deal is announced between Cerberus and Safeway, Kroger could still mount a bid.
Cerberus already owns the Albertsons supermarket chain, which operates some 1,000 stores.