Giant Grocery Owner Merging With Food Lion Parent Company

Two European companies are merging, and it will have a major impact on the Fredericksburg grocery market.

Across the region, Giant grocery stores and Food Lion grocery stores are found a short drive from each other. These frequent neighbors are about to get closer, with Royal Ahold NV, which operates Giant, merging with Food Lion owner Delhaize Group.

The deal creates a $29 billion powerhouse in the Atlantic Coast grocery market, according to NBC Washington.

The move puts both chains in a better position to compete with Wal-Mart, Safeway and other discount grocers, according to WTOP.

Earlier this year, Kroger announced it had completed the purchase of rival Harris Teeter, and singled out attractive expansion opportunities in the Washington, D.C. region.