8-KOther EventsExhibits & Filings

LOWES COMPANIES INC 8-K Report, Corporate Update (Jul 31, 2012)

Filed July 31, 2012For Securities:LOW

Summary

Lowe's Companies Inc. (LOW) announced on July 31, 2012, that it had submitted a non-binding proposal to acquire Canadian retailer RONA Inc. for C$14.50 per share in cash. This proposal was aimed at a full acquisition of RONA's outstanding common shares. The offer was contingent upon satisfactory completion of due diligence by Lowe's. However, the board of directors of RONA rejected Lowe's proposal. In response to this rejection, Lowe's chose to make its offer public. The company stated its intention was to allow RONA's shareholders and other stakeholders to review the potential economic and commercial benefits of the acquisition and to encourage shareholders to express their views to RONA's board. The filing includes the press release detailing this non-binding proposal as an exhibit.

Key Highlights

  • 1Lowe's submitted a non-binding acquisition proposal for RONA Inc. for C$14.50 per share in cash.
  • 2The offer was for the acquisition of all outstanding common shares of RONA.
  • 3The proposal was conditional on the completion of satisfactory confirmatory due diligence by Lowe's.
  • 4RONA's board of directors has rejected Lowe's acquisition proposal.
  • 5Lowe's decided to make the proposal public following RONA's rejection.
  • 6The company aims to allow RONA shareholders and stakeholders to evaluate the proposal's benefits.
  • 7The filing incorporates by reference a press release detailing the proposal.

Frequently Asked Questions

The primary purpose of this 8-K filing was to disclose Lowe's Companies Inc.'s non-binding proposal to acquire RONA Inc. and to announce RONA's subsequent rejection of that proposal.

Lowe's made a non-binding offer to acquire all issued and outstanding common shares of RONA for C$14.50 in cash per share.

No, the board of directors of RONA Inc. rejected Lowe's non-binding acquisition proposal.

Lowe's made the proposal public after its rejection by RONA's board. The company stated its intention was to allow RONA's shareholders and other stakeholders to review the economic and commercial benefits of the proposal and to enable shareholders to communicate their views to RONA's board.