In February 2016, Lowe’s Companies, the world’s second-largest home improvement retail chain, have agreed to acquire RONA, Canada’s largest home improvement retailer. This month, Rona shareholders have voted in favor of the company to be taken over by Lowe’s Home Improvement.
All of the issued and outstanding common shares of RONA will be bought for C$24 per share in cash and all of the issued and outstanding preferred shares of RONA for C$20 per share in cash, bringing up a total of C$2.3 billion.
The arrangement was approved by 99.92% of votes cast, representing 70.22% of total shares outstanding.
“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,” said Lowe’s Chairman, President and CEO Robert A. Niblock, back in February.
With this purchase, both companies will develop the the leading home improvement retailer from Canada. The deal represents a premium of 104% over RONA’s share price in February 2, 2016 and a 38% premium on RONA’s 52-week high.
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