Lowe's buying Rona for USD$2.3 billion

[Locutus]

The Lowe’s home improvement chain is buying Quebec-based Rona Inc. in a deal valued at USD$2.3 billion.

The companies say the combination will make Lowe’s the Canadian leader among home improvement retailers.

The transaction is supported by management of both companies, although it would require various approvals.

Lowe’s approached Rona several years ago but that takeover attempt failed after opposition by the Quebec government of the day and a large number of Rona’s independent dealers.

Rona’s chairman says in today’s statement that the timing is better now and Lowe’s has made commitments to the Canadian company’s employees, suppliers and independent dealers.

For shareholders, Lowe’s is offering $24 per share in cash — about double what the stock was worth at the end of trading on Tuesday before the announcement.

Lowe's buying Rona for USD$2.3 billion - 680 NEWS

 

[Curious Cdn]

Rona had been struggling around here, lately. I expect to see more stores closing soon.

 

[Walter]

Too bad I didn't have any Rona stock.

 

[spaminator]

the employees that are going to be laid off are going to feel like they were hit with a lowe blow.

 

[TenPenny]

'The timing is better now' means 'the economy sucks, and Rona is in trouble'.

 

[Walter]

'The timing is better now' means 'the economy sucks, and Rona is in trouble'.

Good business decision.