Supervalu, a discount food retailer and wholesaler, is on track to replace Albertson’s as the second-largest supermarket group in the US, after Albertson’s said on Monday it had accepted a $17.4bn buy-out bid from a consortium of retailers and financial buyers.

Under the deal, Supervalu will take over 1,126 of Albertson’s best-performing supermarkets across the US, including the Shaw’s, Acme and Jewel names.