Lowe's Cos. Inc. drops controversial $1.8 billion bid to buy Rona |
| The Globe and Mail - Sep 17, 2012 |
Lowe's Cos. Inc. has withdrawn its $1.8-billion (U.S.) offer for Quebec-based home improvement retailer Rona Inc.
Mooresville, N.C.-based Lowe's said in a terse statement it's "unfortunate" that Rona's board of directors "did not recognize the important economic and commercial benefits of the proposal for its stakeholders and for Canada.
"Lowe's has repeatedly attempted to engage the board of directors of Rona with respect to its proposal in order to conduct confirmatory due diligence and move forward with a friendly negotiated transaction."
Lowe's interest in Rona triggered a huge controversy in Quebec when it was made public in early July, just as the province went into a summer election campaign. The Liberal government said it would move to block a formal bid on the grounds that Rona was too strategic an asset to let go, given its significance as a key asset in the Canadian economy.
Quebec Finance Minister Raymond Bachand said there was too great a danger that the Canadian supplier base would be eroded.
Read Full Article from The Globe and Mail
- Posted: 2012-09-17 13:47:41
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