US private equity firm Kohlberg Kravis Roberts has decided for the time being not to progress its potential offer for Safeway any further.

However, KKR, which said it had performed significant due diligence, announced it would continue to monitor the situation and keep its position under review.

KKR had been one of six parties to express an interest in bidding for control of Safeway, including supermarket chains Morrisons, Tesco, Sainsbury , Asda Wal-Mart and retail entrepreneur Philip Green.

Meanwhile at an Extraordinary General Meeting held this morning, shareholders of Morrisons approved the offer by Morrisons for Safeway.

Morrisons’ executive chairman Sir Ken Morrison said the result of the EGM endorsed Morrisons’ strategy and underlined the benefits for customers, suppliers, employees and shareholders.