Report: Rona dealers critical of Lowe’s offer
New York -- A group of Rona Inc.'s dealers on Wednesday released an open letter on Wednesday that criticized the proposed takeover of the Canadian home-improvement retailer and distributor by Lowe’s Cos., Reuters reported.
The letter, which was addressed to Lowe's CEO Robert Niblock, was signed by merchants that operate 164 affiliate or franchise Rona stores.
"We want to reinforce your view that it may not be a good idea for you to buy Rona, after you appeared to state your doubts about the deal on Monday, while you were announcing your financial results," the letter stated.
On Monday, the Lowe’s chief executive said a deal was "not imminent."
The take-over proposal has developed into an election issue in Quebec, the home province of Rona, with both the governing Liberal party and challenger Parti Quebecois criticizing the offer and promising new rules to crack down on foreign takeovers, Reuters reported.