Kroger's $1.65 Billion Giant Eagle Deal Draws Regulatory Scrutiny

Kroger has agreed to acquire Giant Eagle, the family-owned food and pharmacy retailer with roughly $9 billion in annual sales, in a deal valued at $1.65 billion — $1.25 billion in cash plus the assumption of about $400 million in liabilities. The acquisition adds 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.

The proposed tie-up is already facing regulatory scrutiny, an echo of the antitrust fight that sank Kroger's earlier Albertsons merger. Separately, the grocer named Emilee De Martino as its next Chief People Officer and declared a $0.39 quarterly dividend with an August 14 ex-date.

Analysts remain constructive on the stock: the average rating sits at Buy, though Evercore ISI recently trimmed its price target to $78 from $80.