Cincinnati, OH -- Kroger announced Tuesday they will buy Harris Teeter for about $2.5 billion.
Kroger will purchase Harris Teeter shares for $49.38 per share in cash.
The merger will be completed pending approval from Harris Teeter shareholders and regulators. The Boards of Directors for both companies have already approved the terms of the agreement.
Cincinnati-based Kroger, said there are no plans to close stores and both companies will continue to operate with their respective headquarters. Harris Teeter, based in Matthews, NC, has 212 stores in the southeast and mid-Atlantic regions from Florida to Washington, DC.
The merger will make a combined total of 2,631 grocery stores employing more than 368,300 employees throughout 34 states, according to Kroger.
Kroger said they will acquire Harris Teeter's $100 million in debt, but says they plan to save $40 million to $50 million in cost savings during the next three to four years.
Harris Teeter said earlier this year that they were talking with two private equity firms to possibly sell the grocery chain.
Read: Potential Buyers Approach Harris Teeter Supermarkets