Government agencies have granted Lowe’s the final approvals needed for the retailer to buy Canadian home improvement retailer and distributor RONA Inc. in a deal expected to close May 20.
Lowe’s needed two final approvals to move forward, and the company announced May 13 that the deal now has no other regulatory hurdles left.
“The latest clearance under the Investment Canada Act, which ensures foreign-led investments provide a so-called net benefit to the country’s economy, comes a day after Canada’s Competition Bureau ruled the deal poses no threat to retail competition,” The Wall-Street Journal reports.
In February, Lowe’s announced its intentions to buy the Canadian company in a $2.3 billion deal. The acquisition dramatically enlarges the U.S. company’s presence in Canada, boosting Lowe’s store count from 40 to approximately 540 in the country. All locations will retain RONA branding.
“The transaction is expected to accelerate Lowe’s growth strategy by significantly expanding our presence in the Canadian market through the addition of RONA’s attractive business and excellent store locations across the country,” Robert Niblock, Lowe’s chairman, president and CEO, said in February.
RONA owns the licensing rights to the Ace Canada brand, which Lowe’s will acquire and use as part of the purchase, according to Ace Hardware.
“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,” Lowe’s Canada president Sylvain Prud‘homme says. “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.”