India, July 1 -- Kroger Co. (KR) on Wednesday announced a definitive agreement to acquire privately held grocery and pharmacy retailer Giant Eagle, Inc., for $1.65 billion.

The transaction is expected to close in 2027.

The purchase price comprises $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.

The company expects the transaction to be accretive to adjusted earnings per diluted share in the second full year after closing, excluding one-time transaction and integration costs.

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The company expects to maintain its dividend, continue its previously announced $2 billion share repurchase program, and keep its...