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July 1 (Reuters) - Kroger KR.N said on Wednesday it would acquire food and pharmacy retailer Giant Eagle in a $1.65 billion deal, as it looks to expand its retail footprint.

Dealmaking in the industry, including food, beverage, personal care, pet products and health, has been robust. Companies are consolidating to weather inflationary pressures, shifting consumer preferences and intensifying competition.

"Giant Eagle expands our reach into attractive adjacent markets," Kroger CEO Greg Foran said.

The transaction involves $1.25 billion in cash consideration and the assumption of approximately $400 million in Giant Eagle's outstanding liabilities, Kroger said.