MOORESVILLE, NC— Lowe’s (NYSE: LOW) gave up on its attempt to acquire RONA (TSX: RON) after meeting resistance from the Montreal-based home improvement chain's board and from local political figures.
Lowe’s, with over 1,750 stores, says it would still like to buy the chain, Canada's largest. It's offer in July totaled $1.75 billion. RONA has about 600 stores, 60 of them big box types; Lowe's has 31 in Canada.
"It is unfortunate that the RONA board of directors did not recognize the important economic and commercial benefits of this proposal," Lowe's said in a statement.
RONA rejected the original offer within days of receiving it and the Quebec Government called RONA a "strategic asset" to Canada and the Quebec Province politicians. Both the outgoing Liberal Party and the newly elected Parti Quebecois voice concern about the buyout.
Have something to say? Share your thoughts with us in the comments below.