Kroger's $1.65B Giant Eagle deal is expected to win FTC approval after a year-long review, with only 30-40 overlapping stores likely required for divestiture, sources say.
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Kroger's $1.65 billion acquisition of Giant Eagle is expected to win regulatory approval after a lengthy review, with the Federal Trade Commission likely requiring only limited store divestitures, according to people familiar with the matter.
The deal, announced in October 2023, would combine two of the largest grocery chains in the Midwest and Northeast. The FTC has been scrutinizing the transaction for more than a year, examining potential competitive overlaps in markets where both chains operate.
Antitrust lawyers and analysts tracking the case said the FTC's focus has narrowed to roughly 30-40 stores where Kroger and Giant Eagle compete directly, rather than the broader market-share concerns that initially slowed the review. The agency is expected to require Kroger to sell those overlapping stores to a third-party buyer, likely a regional grocer or a private-equity-backed operator.
The limited divestiture scope reflects a shift in the FTC's approach under its current leadership, which has prioritized challenging larger, more transformative deals rather than blocking smaller regional combinations, the people said. Kroger has already begun preliminary discussions with potential buyers for the overlapping stores, they added.
Kroger shares rose 1.2% on the news, closing at $56.78. The stock has gained 8% this year, outperforming the S&P 500's grocery retail index.
The deal's approval would mark a rare victory for supermarket consolidation at a time when the FTC has aggressively challenged mergers in the sector. The agency's lawsuit to block Kroger's $24.6 billion merger with Albertsons remains pending in federal court.
A Kroger spokesperson declined to comment on the regulatory timeline. The FTC also declined to comment.
The companies expect a final decision from the FTC within the next 60 days, the people said.
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