Shopping Discussion

Lowes to buy Rona for 3.2B

  • Last Updated:
  • Apr 15th, 2016 2:01 pm
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Banned
Apr 22, 2015
884 posts
106 upvotes
Ontario, Canada
Good deal for Lowes, save 40%
English is not my first language, please bear with me
Deal Expert
User avatar
Dec 7, 2012
32228 posts
8515 upvotes
GTHA
RONA WAS DOOMED, ACCORDING TO MICHAEL SABIA (President and Chief Executive Officer of la Caisse de dépôt et placement du Québec)
http://sivertimes.com/rona-was-doomed-a ... abia/11957
RONA “It IS UNHAPPY”

Rona had no chance of survival in a market dominated by American giants renovation Home Depot and Lowe’s, believes Michael Sabia.

Earlier this month, Lowe’s has submitted a bid of $ 3.2 billion for Rona, a proposal that has received the unanimous support of the Board and of the Fund, holding approximately 17% of the shares of company in Boucherville.

“It’s unfortunate, but that is the result of our analysis in the circumstances, the best way to protect the capital of our depositors had to file our actions. “- Michael Sabia

There was no question that the institution joins other investors to have a higher than Lowe’s offer. “We believe it was impossible to make such an offer without losing the capital of our depositors,” ruled the officer.

“We would have liked Rona position as a consolidator of the industry,” he insisted, stressing that the Fund has helped CGI and WSP to do in their respective fields. Recall that in 2012, the Fund had intervened with Rona for the company separates from its then CEO, Robert Dutton, and makes changes to its board. Robert Sawyer, who was number 2 at Metro, was appointed head of Rona.

But the strategy did not work. Michael Sabia sees three main reasons for this failure: the strong will of Home Depot and Lowe’s to increase their presence in Canada, the industry consolidation trend in the world and the ever growing popularity of online business. On this last point, “Rona was improving but was still not well positioned,” said Mr. Sabia.
Banned
Jan 12, 2015
4107 posts
27308 upvotes
Why is this thread about Lowes buyout in the shopping discussion section, but the Swiss Chalet buyout was moved to Food and Drink?

Want to know for future reference, so can post in the correct forum.

Seems like a lack of consistency.
Deal Addict
Aug 30, 2011
1259 posts
291 upvotes
Edmonton
I'm glad about this. RONA always had the worst product selections, even worse than Canadian Tire. Second-grade quality products with high prices. The only thing that was good about RONA to me is that my nearest store had free popcorn :facepalm:
Deal Guru
Feb 9, 2012
14662 posts
2734 upvotes
Toronto
BK2006 wrote:
Mar 31st, 2016 12:02 pm
Why is this thread about Lowes buyout in the shopping discussion section, but the Swiss Chalet buyout was moved to Food and Drink?

Want to know for future reference, so can post in the correct forum.

Seems like a lack of consistency.
Because we don't eat @ Lowes or Rona, but we do shop there.
Banned
Jan 12, 2015
4107 posts
27308 upvotes
playnicee1 wrote:
Apr 1st, 2016 7:38 am
Because we don't eat @ Lowes or Rona, but we do shop there.
based on this logic then this thread should be in the Home and Garden section and not the shopping discussion section.
Deal Guru
User avatar
Mar 25, 2003
13869 posts
2961 upvotes
Markham
didn't read the article
but is Reno depot part of the buy out?
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