Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Robert Sawyer, president and CEO of Rona, gets ready for the company's annual general meeting Tuesday, May 12, 2015 in Boucherville, Que.

Paul Chiasson/The Canadian Press

Canadian home improvement retailer Rona Inc. has rejected lingering suggestions that it would be better off in the long run to merge with Lowe's Cos. Inc., saying its investors are just glad their stock has recovered under the company's current leadership.

"Honestly, unless it's a real knockout price [that we're offered], I think people are satisfied that the stock price is climbing," chairman Robert Chevrier told reporters after Rona's annual meeting on Tuesday, noting the shares have roared back since hitting a 10-year low of $8.70 in late 2011. "What I'm hearing from people is, 'Don't get too worked up. You'll get there.'"

Lowe's, which is based in Mooresville, N.C., made a non-binding offer of $14.50 per share for the Quebec-based Rona in July, 2012, just as a provincial election campaign began in Quebec. The bid became politicized, with the incumbent Liberal government vowing to prevent the takeover, and it died before Rona shareholders could have a say.

Story continues below advertisement

Since then, Rona has implemented a turnaround plan under new chief executive Robert Sawyer in which it scaled down operations, repositioned banners and became more aggressive on marketing. The company generated a profit for 2014, and same-store sales growth has been positive for three straight quarters. Meanwhile, Lowe's is speeding up its expansion plans for Canada, announcing plans to buy a distribution centre in Milton, Ont., and up to 13 store leases given up by Target Corp.

But the idea of joining the two companies lives on. "We continue to be of the view that Rona and Lowe's Canada would be much more competitive with Home Depot Canada if they were to combine forces," Desjardins Capital Markets analyst Keith Howlett wrote in an April 9 note. "With both companies now much healthier than when the nascent courtship blew up over 2 1/2 years ago, the probability of a marriage appears, in our view, slightly higher."

Mr. Chevrier said no one has approached Rona seeking to do a takeover transaction and that such a deal is not in the company's plans, adding that the greater scale of a Rona-Lowe's alliance would not necessarily provide a boost in competitive power against small, independent hardware retailers, which still control most of the market.

Rona on Tuesday reported a first quarter loss of $11.7-million or 11 cents per share because of bad weather in Quebec and higher marketing expenses. Revenue rose 2 per cent to $778.8-million in what is typically the company's slowest three-month period. Analysts had been expecting a loss of 8 cents per share.

Rona shares closed up two cents on Tuesday at $16.06 in Toronto trading.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies