MOORESVILLE, N.C. and BOUCHERVILLE, Quebec -- U.S. home improvement retailer Lowe's Companies received approval for the purchase of the Canadian home improvement company Rona.

The approval was granted under the Investment Canada Act and clearance from the Competition Bureau.

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"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," said Lowe's Canada President Sylvain Prud'homme. "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."

The transaction has previously been approved by Rona shareholders and clears the way for final closing of the sale, which is expected on May 20.

Rona operates a network of close to 500 corporate and independent affiliate dealer stores in a number of complementary formats. With its nine distribution centres, Rona serves its network of stores and several independent dealers operating under other banners, including Ace, for which Rona owns the licensing rights and is the exclusive distributor in Canada. With more than 17,000 employees in corporate stores and more than 5,000 employees in the stores of its independent affiliate dealers, the company generates annual consolidated sales of $4.2 billion.