Canadian home-improvement chain rebuffs Lowe’s offer to acquire
Mooresville, N.C. -- Lowe’s Cos. on Tuesday confirmed a July 8 proposal to acquire Canadian home-improvement and hardware retailer Rona, but said the Quebec-based chain rejected the $1.9 billion offer.
According to the 800-store Rona, the sale to Lowe’s would not be in its best interests.
"Rona's strategic focus remains to execute on its business plan with a view to capturing the significant opportunities that it sees for the business," Rona said in a statement.
According to Lowe’s, talks between the two companies launched last year, and negotiations included at least one previously rejected proposal. Despite the rebuffs, Lowe’s said it plans to continue its efforts to acquire Rona.
“We believe a combination of Lowe's and RONA makes enormous business sense,” said Robert Niblock, Lowe’s chairman, president and CEO. "We encourage the board of Rona to reconsider its position."
Under Lowe's proposal, Rona would remain a Quebec-based company with the Canadian head office in Boucherville, Quebec.