Private-equity firm Cerberus Capital Management is reportedly working on a US$9bn takeover bid for US retail giant Safeway Inc.
The Wall Street Journal yesterday (5 March) reported Cerberus had been hoping to secure a deal by now but could face competition from another US grocer, Kroger.
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Cerberus is offering US$40 a share, the WSJ said. However, Kroger is mulling its own bid either for all or part of Safeway, the publication added.
Last month, Safeway admitted it was in talks over a possible sale of the company, although it did not name the interested party.
Cerberus, which has built a food retail business over the last eight years after two deals with Supervalu Inc, has been said to have been in talks with Safeway.
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Earlier this week, Bloomberg reported Kroger had “recently” expressed interest, contacting Safeway – and also Cerberus about a possible deal should the private-equity firm buy the retailer.
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By GlobalDataCiting unnamed sources, Bloomberg said Safeway would prefer to be sold as a whole.
A spokesperson for Cerberus had not returned a request for comment at the time of writing.
Officials at Kroger could not be reached for immediate comment.
