Competition Bureau satisfied that proposed sale of RONA will not limit consumer choice
May 12, 2016 — OTTAWA, ON — Competition Bureau
The Competition Bureau is satisfied that the proposed acquisition of RONA by Lowe’s is not likely to result in a substantial lessening or prevention of competition in Canada.
After reviewing the proposed transaction, the Bureau determined that in each local market where there is overlap, effective competitors will remain in place post‑merger to maintain competition. Consequently, the Bureau is issuing a No Action Letter to the parties.
Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition. In reviewing mergers, the Bureau considers many different elements, including the level of economic concentration in the relevant industry and the merging parties’ market shares.
- Lowe’s and RONA are both retailers of home improvement products in Canada.
- Unlike Lowe’s, RONA also operates a wholesale distribution business that supplies both its retail network as well as third‑party customers.
- The transaction is also subject to review under the Investment Canada Act.
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