Kroger announced on July 1 it would buy regional ⁠supermarket chain Giant Eagle in a $1.65 billion deal, according to CNBC. 

The acquisition will give the grocery retail chain expanded presence in the Midwest and Mid-Atlantic region, where competition is already fierce.

CNBC says the transaction is the first major acquisition since its $25 billion merger with Albertsons fell apart in 2024.

“We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into ‌attractive adjacent markets,” Kroger CEO Greg Foran said in a July 1 press release. Kroger said it will finance the transaction with cash.

Giant Eagle told KDKA-TV that as part of Kroger, they will keep their name, and Giant Eagle will continue to run the supermarkets, pharmacy and Market District brands as a division of Kroger. 

Giant Eagle, which is family-owned, generates about $9 ⁠billion in annual sales and operates around 200 supermarkets ⁠and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.