Sen. Warren calls for scrutiny of Giant Eagle-Kroger merger from FTC and DOJ

The proposed $1.65 billion acquisition of Giant Eagle by Kroger isn't sitting well with Sen. Elizabeth Warren from Massachusetts. 

Warren wrote a letter earlier this month to the Federal Trade Commission and the U.S. Department of Justice, urging them to "scrutinize" the deal along with two other major proposed acquisitions in the food industry.

"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 said in her message.

Warren is concerned this will result in higher grocery costs with fewer incentives to offer discounts, high-quality products and good service.

"Sen. Warren's coming from a more national perspective of a larger concern over consolidation of all kinds," said Tim Schooley, a real estate reporter for the Pittsburgh Business Times. "She's raising the issue that it is a salient one at a time when American grocery shoppers have reasons to be very concerned about how expensive everything is getting."

This all comes at a time when Kroger just announced plans to lay off around 3,000 corporate employees over the next three years, related to an increased use of artificial intelligence to improve efficiency.

Giant Eagle has been facing mounting pressure with more direct local competition as Wegmans and Meijer expand to southwestern Pennsylvania.

Schooley said there is precedent for concerns about grocery mergers after Kroger tried to buy Albertsons, a much larger chain, which was rejected. However, he doesn't think it will be the same with Giant Eagle and feels Warren's letter is unlikely to have any actual consequences on the deal set to go through in 2027.

"I don't think anyone believes that there's any reason for that not to get approved in a Trump administration that isn't inclined to stop such things," Schooley said.

A spokesperson for Giant Eagle told KDKA the company cannot comment due to the ongoing FTC review process.

KDKA reached out to Kroger as well but hadn't heard back by airtime.