Canada Approves Lowe’s Acquisition Of Rona

Lowe's Companies has been granted approval under the Investment Canada Act, and clearance from the country’s Competition Bureau, for its pending acquisition of home improvement retailer Rona Inc.

"We are very pleased that Canadian regulatory agencies have authorized the transaction and we look forward to the benefits it will bring to stakeholders across the country," said Lowe's Canada president, Sylvain Prud'homme. "We have made significant commitments to the Canadian market overall, to Quebec and to the communities in which the company operates. We believe these commitments will serve customers, employees, dealer owners and our partners well on a long-term basis."

Rona president and CEO, Robert Sawyer, added, "We have completed a major step toward the closing of the transaction, which will be very positive for the future of Rona, its employees and all of its stakeholders."

The transaction has previously been approved by Rona’s common shareholders. The Canadian regulatory approvals is the last major milestone in the process and clears the way for final closing of the transaction, the company said. Lowe’s expects to finalize the acquisition on May 20.

In February, Lowe's announced plans to expand into the Canadian home improvement market with the acquisition of Rona in a $2.3 billion transaction. Lowe’s operates about 40 home centers in Canada. Rona operates a network of close to 500 corporate and independent affiliate dealer stores in a number of formats.