MONTREAL -- The Lowe's home improvement chain is buying Quebec-based Rona Inc. in a deal valued at $3.2 billion.
The companies say the combination will make Lowe's the Canadian leader among home improvement retailers.
The transaction is supported by management of both companies, although it would require various approvals.
Lowe's approached Rona several years ago but that takeover attempt failed after opposition by the Quebec government of the day and a large number of Rona's independent dealers.
Rona's chairman says in today's statement that the timing is better now and Lowe's has made commitments to the Canadian company's employees, suppliers and independent dealers.
For shareholders, Lowe's is offering $24 per share in cash -- about double what the stock was worth at the end of trading on Tuesday before the announcement.
