Lowe’s takeover of Canadian home improvement chain gets regulatory OK

Lowe’s takeover of Canadian home improvement chain gets regulatory OK



With regulatory hurdles out of the way, Lowe's Cos. is one step closer to completing its acquisition of Canadian home improvement retailer Rona Inc.



Lowe's has officially been granted approval under the Investment Canada Act and clearance from the Competition Bureau. Rone operates nearly 500 stores in Canada.



Lowe's announced it was buying Rona in February for about $2.3 billion. It previously tried to buy Rona in 2012, but the agreeement fell through.



"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."



With this last bit clicking into place, the road is now clear for the final closing of the transaction, which is expected to take place on May 20.