Kroger acquiring Giant Eagle in massive deal; Will prices rise?

Kroger is making another major move in the grocery world—and this one hits close to home.

The Cincinnati-based grocery giant announced Wednesday that it has entered into an agreement to acquire Giant Eagle, the Pittsburgh-based grocery and pharmacy retailer with stores across Ohio, Pennsylvania, West Virginia, Maryland and Indiana. The deal is valued at $1.65 billion, including $1.25 billion in cash and about $400 million in assumed liabilities. Giant Eagle operates 197 supermarkets and 11 standalone pharmacies, according to the companies.

Kroger said the acquisition would expand its reach into “attractive adjacent markets” and allow the company to build on Giant Eagle’s store base, loyalty program, pharmacy business and private-label products.

The deal is expected to close in 2027, pending regulatory approval. Kroger and Giant Eagle said they expect to make limited Giant Eagle store divestitures as part of that process. That means Kroger expects it may have to sell off some Giant Eagle stores to get government approval for the merger.

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For Central Ohio shoppers, the big question is what happens to prices – especially at a time when grocery prices remain a major concern.

Industry analysts have noted that large grocery mergers can cut both ways. Kroger has argued that deals like this can create efficiencies, strengthen supply chains and allow the company to lower prices. Reuters reported that Kroger is planning price cuts tied to supply chain improvements and technology investments.

But regulators have been skeptical. The Federal Trade Commission previously challenged Kroger’s proposed merger with Albertsons, arguing that reduced competition could lead to higher grocery prices, fewer choices and lower-quality service. That merger was blocked.

This deal is much smaller than the failed Albertsons merger, but it will likely still face scrutiny in markets where Kroger and Giant Eagle overlap – including here in Ohio.

Kroger is already the dominant grocer in the Columbus area. Kroger reportedly has nearly $3.5 billion in local sales across 58 stores in the region, keeping it firmly in the top spot among Central Ohio grocery chains.

Giant Eagle has also had a significant Central Ohio presence, though that footprint has been shifting. The company recently closed stores in the region, including a Lancaster location.

Kroger CEO Greg Foran called Giant Eagle a “well-run, high-quality regional grocer” with a strong reputation for fresh products, pharmacy, private label and customer loyalty. Giant Eagle CEO Bill Artman said the deal would position the company to deliver “better everyday value” and a stronger shopping experience for customers.

For shoppers, the impact may depend on what regulators require, how many stores are divested and whether Kroger follows through on promised price investments. We should note, your local Giant Eagle is not changing overnight. The companies expect the transaction to close sometime in 2027.

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