Woolworth’s Ltd. agreed to buy a Safeway unit.

Woolworth’s Ltd., which is the second-largest retailer in Australia and is unrelated to F. W. Woolworth Co., agreed to acquire the Oakland-based supermarket firm’s Australian operations. In exchange for its 124 stores in Australia, Safeway will receive a 20% equity interest in Woolworth’s worth more than $100 million at current exchange rates. Safeway said the transaction would generate a “significant one-time gain” in excess of $40 million before taxes.