22:13:52 EDT Fri 26 Apr 2024
Enter Symbol
or Name
USA
CA



Rona Inc
Symbol RON
Shares Issued 106,904,501
Close 2016-02-03 C$ 23.30
Market Cap C$ 2,490,874,873
Recent Sedar Documents

Globe says Lowe's to take over Rona for $3.2-billion

2016-02-04 07:23 ET - In the News

The Globe and Mail reports in its Thursday edition that Lowe's got it right the second time. The Globe's Marina Strauss and Nicolas Van Praet write that the U.S. home-improvement chain is acquiring Rona in a $3.2-billion agreement by taking some savvy steps to get key stakeholders in the province on board. Lowe's hostile offer in 2012 was rejected by the company. Now, Lowe's is paying a big premium of more than twice the retailer's share price to win over the Quebec-based company's board, key investors and others. Rona closed Wednesday at $23.30 after Lowe's announced its offer of $24 a share. To win the deal, Lowe's said it will keep most of Rona's current employees and key leaders, and made other commitments to ensure its operations respond to the needs of local customers. The deal already has the important approval of the Caisse pension fund, Rona's largest shareholder, as well as Dominique Anglade, the new Quebec Minister of the Economy. Lowe's failed to understand the political and public sensitivity in Quebec to a foreign takeover, and found itself faced in 2012 with strong opposition to the deal from Rona shareholders and the Quebec government. Rona has more than 500 outlets.

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