- In a preliminary agreement announced on Thursday, Cerberus Capital Management LP has brokered a deal to buy Safeway Inc. for more than $9 billion.
- The deal is would have Cerberus' Albertsons stores, the fifth-largest grocer in the U.S., merge with Safeway, the second-largest grocer.
- The purchase would up the number of Albertsons stores to 2,400, second behind Kroger's 2,640.
This deal could bring Cerberus closer to industry leader Kroger, who just last October outbid the private equity firm to acquire Harris Teeter for $2.5 billion. It's an important move for Cerberus, and a small victory seeing that Kroger was reportedly considering its own rival bid for the struggling Safeway. There may be some skirmishes ahead though, as Kroger still has 21 days to offer Safeway a better deal--although it would require a termination fee as high as $250 million to be paid to Cerberus.