Lowe’s gives consent for an acquisition of Canadian Rona

Lowe’s gives consent for an acquisition of Canadian Rona

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United States home improvement retailer Lowe’s Companies Inc. announced to acquire Canada’s Rona Inc, worth C$ 3.2 billion (i.e. US$ 2.28 billion), after it had crossed a barrier of opposition turmoil by the company, politicians and dealers in Quebec, over its previous bid.

In September year 2012, Lowe’s, that had withdrawn a proposal worth C$ 1.8 billion to acquire Rona, stated to all the major key commitments of the project alongside headquarters shift over of its Canadian business to Boucherville, Quebec.

The majority of Rona’s employees would be retained by Lowe’s as well to keep up keeping its brand name to ramp up distribution to dealers individually (the ones who had been on opposing side during previous deal discourses).

As of March, the analysis have shown 40/1850 Lowe’s store in Canada. According to its official website data, Rona has approx. 700 operating stores across Canada.

Moreover, as per Lowe’s, a union’s 2015 pro-forma revenue is estimated worth C$ 5.6 billion.

As per press releases by Lowe’s CEO Robert Niblock, the deal is also believed to lay a pathway for both the companies to expand Canada’s C$ 45 billion home improvement industry. The deal also includes a C$20/share cash payment for Rona’s preferred shares.The combined company’s Canadian operations will be led by Sylvain Prud’homme, the president of Toronto-based Lowe’s Canada.

And for agreed policy, Lowe’s will be paying off C$ 24/share in cash for Rona’s common shares – more than double to the Tuesday Stock CLOSING.

“We believe the time is right to take the next step in the evolution of the Rona family,” – Rona Chairman, Robert Chevrier

Rona’s board expects shareholders to vote in favor of this deal in a special meeting arranged for them before the end of first Q.

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I am an independent trader currency and commodity with about eight years of experience. I love the financial world because it is like one big puzzle and I hope we help each other out to solve the puzzle to help us realize our dreams. I received my BBA in Accounting (With Honors) - from The University of Texas - San Antonio. Achievements: Beta Alpha Psi National Accounting Honors Fraternity member, Leadership Challenge Participant, Dean's List. I have passed the Series 63, 22, Texas Real Estate exam, and the DRI Business Continuity exam.

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