U.S. home improvement chain Lowe’s announced its acquisition of Quebec retailer Rona

The $3.2-billion deal on Wednesday by Lowe’s to buy Rona is partly motivated to pursue a strategic opportunity to become the largest home renovation retailer in Canada, said Jean Rickli, a retail analyst with the JC Williams Group. But when the price tag translates to roughly US$2.3 billion, the deal is more affordable. With the low loonie, Canadian companies become very attractive to international companies, according to Perry Sadorsky, an associate professor of economics at York University’s Schulich School of Business in Toronto.

Retail consultant Wendy Evans predicted the Lowe’s-Rona announcement is likely to be the first of other takeover deals in the offing. “Particularly with our dollar, this market looks like very good value so there will be others,” she said.

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