DOJ asked to examine Giant Eagle deal

By PATRICK VARINE
TribLive

U.S. Sen. Elizabeth Warren, D-Mass., has asked the U.S. Department of Justice to take a closer look at grocery chain Kroger’s proposal to acquire Giant Eagle.

The deal was one of three large-scale food-industry acquisitions Warren referenced in an Oct. 5 letter to Justice Department officials, along with Sysco’s $29.1 billion acquisition of Restaurant Depot and McCormick & Co.’s proposal to acquire the Unilever company.

“While Kroger has framed this as expanding its footprint ‘into attractive adjacent markets,’ there is considerable overlap between Kroger and Giant Eagle’s respective territories, generating serious concern that the acquisition will lead to reduced competition in local markets,” Warren wrote. “As one antitrust expert pointed out, ‘It’s not uncommon in Ohio to find a Kroger or Giant Eagle on the same street. For many families, they’re the two stores they choose between each week.’” Kroger has proposed a $1.65 billion acquisition of the Western Pennsylvania-based grocery chain. The company has not yet issued a response to Warren’s request.

In its SEC filing, Kroger addressed the future of Giant Eagle locations: “In connection with obtaining the requisite regulatory clearance necessary to consummate the acquisition, Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures.”

In her letter, Warren wrote: “Combining them would mean fewer choices, less competition and inevitably higher grocery prices for communities across the states.”

The National Grocers Association has also called on antitrust regulators to undertake a “robust review” of the transaction.

“With 69% of U.S. grocery sales controlled by just four national chains, strong antitrust enforcement is more important than ever to protect consumer choice, preserve competitive markets, and maintain a level playing field for independent grocers, farmers, suppliers, and the communities they serve,” association officials said in a July statement about the acquisition.

Kroger, which owns several other grocery chains including Ralphs, Harris Teeter, Food 4 Less and others, was blocked by the Justice Department and the Federal Trade Commission from acquiring the Albertsons chain of grocery stores in 2024.

Giant Eagle officials declined to comment. Messages seeking comment from Kroger officials were not immediately returned.