Kroger to Acquire Competitor for $1.65B

Kroger is reviving its big-deal ambitions with a $1.65 billion move to acquire Giant Eagle, a family-owned grocer that gives it more muscle in the Midwest and mid-Atlantic as the grocery price war grinds on. The deal, announced Wednesday, is the first major acquisition under CEO Greg Foran and Kroger's first since its planned $25 billion merger with Albertsons collapsed in 2024, CNBC reports. Giant Eagle brings roughly $9 billion in annual sales and nearly 200 supermarkets across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana, along with 11 standalone pharmacies. The stores will keep the Giant Eagle name, per CBS News.

Kroger will pay $1.25 billion in cash and take on about $400 million of Giant Eagle's debt, and expects the transaction to close in 2027 and start boosting adjusted profit in its second full year. The company, which is facing stiff competition from Walmart, Amazon, Aldi, and specialty chains like Trader Joe's, has pledged price cuts on thousands of items and says it will keep its dividend and $2 billion share buyback plan intact, per CNBC. Analysts note that traditional grocers are under pressure, but that Giant Eagle's older, more stable customer base could provide a buffer. Kroger shares slipped about 2% in premarket trading.