Rona takeover by Lowe's gets OK from Ottawa and Competition Bureau

The Lowe's takeover of Quebec-based Rona has now secured all the levels of approval it needs.

The Competition Bureau said it has concluded the acquisition by the U.S. company won't limit consumer choice.

The deal was overwhelmingly approved by Rona shareholders in March, but it also stirred some degree of nationalist sentiment, particularly from Pierre Karl Péladeau, the Parti Québécois leader at the time.

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Lowe's entered the Canadian market in 2007 and had 42 stores in British Columbia, Alberta, Saskatchewan and Ontario when the $3.2-billion deal was announced in February.

The deal cleared its final hurdle when got it federal government approval under the Investment Canada Act, which governs takeovers of Canadian public companies worth more than $600 million by non-state owned enterprises.

"Rona is a strong Canadian-business brand, there's no surprise there was international interest to acquire and maintain the brand," said Navdeep Bains, Canada's Minister of Innovation, Science and Economic Development, on Friday.

"I believe that this investment in Rona demonstrates Lowe's continued commitment to the Canadian marketplace and Canadian consumers."

Bains said he took particular note of the fact that the new company's headquarters will remain in Boucherville Quebec. 

"After a careful balancing of all relevant factors, I was satisfied that this investment will likely be one of net benefit to Canada and to Quebec," he said.

Rona has 496 corporate and dealer-owned stores across Canada, including 238 in Quebec.

Now that all the regulatory hurdles have been passed, the transaction is expected to close by the end of May.