Delhaize Group has made a move to acquire a majority of the assets of US-based food retailer Bi-Lo, which operates 214 stores across North Carolina, South Carolina, Tennessee and Georgia.

According to the Belgian retailer, a non-binding letter of intent has been signed with the bankrupt US retailer to acquire a 'substantial majority' of certain assets, including associated inventory, for US$425m in cash.

Delhaize said that it plans to integrate the assets included inthe deal with its wholly owned US subsidiary Food Lion LLC.

However, the assets will be open to other bids in an auction andanother buyer could top Delhaize's proposed price.

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