Kroger Said to Contact Safeway About Buying Some Assets

Kroger Co., the largest U.S. supermarket chain, recently approached Safeway Inc. about buying part of its operations, people with knowledge of the matter said. The shares of both companies rose.

Kroger also has contacted Cerberus Capital Management LP, the private-equity firm that is the lead bidder for Safeway, about buying some stores that Cerberus may not want, said one of the people, who asked not to be identified because the talks are private. Safeway, the nation’s second-largest grocery chain, would prefer to be sold as a whole, people familiar have said.