Good deal for Lowes, save 40%
English is not my first language, please bear with me
Feb 5th, 2016 11:11 am
Feb 25th, 2016 2:54 pm
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.
Mar 31st, 2016 12:02 pm
Apr 1st, 2016 3:33 am
Apr 1st, 2016 7:38 am
Because we don't eat @ Lowes or Rona, but we do shop there.
Apr 15th, 2016 8:57 am
Apr 15th, 2016 1:52 pm
Apr 15th, 2016 2:01 pm
It's owned by Rona, so yes. This article says the old CEO "believes" that Lowe's will keep the Reno-Depot brand: http://www.thestar.com/business/2016/03 ... eover.html