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Under the terms of the agreement, Kroger will pay $49.38 for each of Harris Teeter's shares. The price represents a 2 percent increase over the company's Monday closing stock price. The deal has been approved by both companies' boards, but remains subject to Harris Teeter shareholder approval. Kroger, based in Cincinnati, operates 2,419 stores in 31 states. Its namesake stores account for more than half its stores. Of Harris Teeter's 212 stores, 138 are in North Carolina, with 55 of those in the Charlotte area. Another 55 stores are in the Washington D.C., area. Its fiscal 2012 revenue totaled about $4.5 billion. Schlotman said the deal marks Kroger's entry into several attractive, high-growth markets such as Charlotte, N.C., and Washington D.C. But he declined to say whether the company planned to eventually expand to all 50 states. "We don't have a map of the U.S. with pins saying, 'We're going to go here and we'll never go there,' " he said. After the deal closes, Harris Teeter will become a Kroger subsidiary and will continue to be led by members of its current senior management. The division will remain based in Matthews, N.C. Kroger Co. says it expects the deal to result in cost savings of $40 million to $50 million over the next three to four years. It will finance the deal with debt and plans to assume Harris Teeter's outstanding debt of about $100 million. Harris Teeter shares closed up 74 cents, or 1.5 percent, to $49.26, while Kroger shares closed at $37.15, up 96 cents, or 2.6 percent.
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