Lowe’s withdraws controversial proposal to buy Rona
Posted September 17, 2012 6:58 am.
This article is more than 5 years old.
MOORESVILLE, NC (NEWS1130) – Lowe Companies is no longer trying to buy Rona Inc., a controversial plan that would have seen Canada’s largest home-improvement retail chain acquired for about $1.8 billion.
The US chain’s withdrawal comes seven weeks after Rona, the Quebec government and others objected to the US company’s overtures, which had begun privately in late 2011 and became public in late July.
“Lowe’s continues to believe that a combination of Lowe’s and Rona makes business sense and would create significant value for all stakeholders,” Lowe’s said in a statement.
“It is unfortunate that the Rona Board of Directors did not recognize the important economic and commercial benefits of this proposal for its stakeholders and for Canada,” the statement said.
“Lowe’s remains committed to the Canadian market and will continue delivering outstanding home improvement products and services to its Canadian customers.”
Although it is the second-largest home improvement retailer in the United States, after Home Depot, Lowe’s has a relatively small presence in Canada
Only 31 of Lowe’s stores are in Canada, out of 1,745 across North America.
Rona has more than 30,000 employees operating a network of nearly 800 stores under several banners as well as 14 hardware and construction distribution centres. Home Depot currently has 180 stores across Canada.
