Deals
Lowe's Agrees to Buy Canada's Rona for $2.3 Billion in Cash
- Chain was rebuffed in 2012 when Canadian dollar was strong
- Investors unimpressed as stock falls most since May 2012
Elijah Carroll, 26, a Lowes lumber associate, operates a forklift at Lowes in Renton, Wash. on Monday, August 19, 2013.
Photographer: Mike Kane/BloombergThis article is for subscribers only.
The Canadian dollar’s loss is Lowe’s gain.
After being rebuffed in its attempt to buy Quebec-based retailer Rona Inc. in 2012, Lowe’s Cos. reached agreement on Wednesday to buy it for C$3.2 billion ($2.3 billion). Two big changes in the past four years made the transaction possible: The Parti Quebecois, which opposed the original deal, is out of power, and the loonie fell to its lowest level against the dollar in more than a decade.