Lowe's Withdraws RONA Purchase Bid

By Bizclik Editor
Share

 

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.

 

SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:

Click here to see the latest issue of Business Review North America

 

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. 

Share

Featured Articles

How CEO Christian Sewing is Mending Deutsche Bank

Deutsche Bank axes 111 senior managers in its retail and private wealth unit as the German bank cuts costs to meet stretching 2025 targets

How Should Corporations Approach Board Diversity?

Having a more diverse board is proven to enhance your organisation’s performance. But assembling a diverse board should be more than a box ticking exercise

These CEOs Increased Their Wealth by US$64bn in Just One Day

American share prices soared on Wednesday after Trump won the US election, putting billions into the pockets of the world’s biggest tech companies

Why Nissan CEO Makoto Uchida Is Halving His Salary

Human Capital

Who Will Take Over From Jamie Dimon as CEO of JPMorganChase?

Corporate Finance

Over Half of US CEOs Back Trump to Boost Global Economy

Leadership & Strategy