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.