UPDATE 6-Lowe's wins over Canada's Rona with renewed takeover offer

Wed Feb 3, 2016 1:20pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Deal valued at C$3.2 bln ($2.28 bln)

* Lowe's to pay C$24/shr per common share, C$20 for prefs

* Premium on common shares more than double Tuesday close

* Largest shareholder Caisse says will accept offer

* Lowe's made unsolicited offer more than three years ago (Adds Breakingviews link)

By Amrutha Gayathri

Feb 3 (Reuters) - U.S. home improvement retailer Lowe's Cos Inc agreed to buy Canada's Rona Inc for C$3.2 billion ($2.28 billion), winning over Rona's board with a far higher offer than an unsolicited bid more than three years ago that was opposed by the company and Quebec politicians.

The deal will put Lowe's in a stronger position to compete with Home Depot Inc in Canada's more-than $30 billion home improvement market.

Lowe's, which withdrew a C$1.8 billion offer for Rona in September 2012, said on Wednesday it had made key commitments, including moving the headquarters of its Canadian business from Toronto to Rona's home base in the Montreal suburb of Boucherville, Quebec.   Continued...