Lowe's Withdraws RONA Purchase Bid
North Carolina-based Lowe's has announced its withdrawal of the unsolicited purchase bid of Quebec-based RONA. Originally proposed in early July to the Board of Directors of RONA, the bid never reached an official offer stage due to RONA’s rejection of Lowe’s interest.
“Lowe's continues to believe that a combination of Lowe's and RONA makes business sense and would create significant value for all stakeholders. 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. Lowe's remains committed to the Canadian market and will continue delivering outstanding home improvement products and services to its Canadian customers,” said Lowes in an official statement.
Lowe's offered to purchase RONA’s outstanding common shares for $14.50 per share. In early August, Lowe's appealed to the Canadian public to encourage the acquisition stating that it was interested in this combination of brands due to the opportunity to share best practices as well as strengthen multi-channel retail strategy in Canada.
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Lowe's expected the purchase would have created a strengthened home improvement retailer to be headquartered in Quebec, enhanced the dealer-owner value proposition, and continued its commitment to local and ethical sourcing of materials through its commitment to Canadian communities.