Rebuffed by RONA, Lowe’s withdraws offer
Mooresville, N.C.-based Lowe’s pulled the plug on its proposal to acquire the Canadian retailer and distributor RONA.
The proposal, dated July 8, would have had Lowe’s acquire Boucherville, Quebec-based RONA for C$14.50 per share.
While announcing its withdrawal of the offer, Lowe’s continued to promote the idea of a combined Lowe’s and RONA as one that makes business sense and would create significant value for all stakeholders.”
However, the combination of the two retailing entities was unpopular among RONA’s board, Canadian unions and, RONA dealers across Canada.
In a statement released Monday, Lowe’s said: “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.”