Lowe’s Companies Inc. has announced:
that it has been granted approval under the Investment Canada Act and clearance from the Competition Bureau with respect to its pending acquisition of RONA inc. (TSX: RON, RON.PR.A, RON.PR.B) (“RONA”).
“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, “Today 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.”
Given that the transaction has previously been approved by RONA common shareholders, this announcement represents the last major milestone in the process and clears the way for final closing of the transaction. The Company expects to close on May 20.
Holders of RON.PR.A turned down Lowe’s offer of $20 via a plan of arrangement on March 31, while common shareholders were enthusiastic about their deal. The issue closed at 20.55-71 today; the comparators I examined while making my favourable recommendation are up more … some a lot more, some just a bit more.
Update, 2016-5-21: Closed:
Lowe’s Companies, Inc. (NYSE: LOW) (“Lowe’s” or the “Company”) today announced that it has completed its previously announced acquisition of RONA inc. (“RONA”), in a transaction valued at C$3.2 billion (US$2.4 billion).
This entry was posted on Friday, May 13th, 2016 at 10:48 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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RON.PR.A, RON.PR.B – Control Deal To Close May 20
Lowe’s Companies Inc. has announced:
Holders of RON.PR.A turned down Lowe’s offer of $20 via a plan of arrangement on March 31, while common shareholders were enthusiastic about their deal. The issue closed at 20.55-71 today; the comparators I examined while making my favourable recommendation are up more … some a lot more, some just a bit more.
Update, 2016-5-21: Closed:
This entry was posted on Friday, May 13th, 2016 at 10:48 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.