U.S. – The world´s second largest home improvement retailer, Lowe’s, announced an agreement to buy Canadian retailer Rona in a deal valued at CAD 3.2 billion (USD 2.28 billion) to enter Canada’s Quebec province, where Rona is the market leader. 

Lowe’s and Rona will create a retailer with 2015 revenue of about CAD 5.6 billion in Canada. Lowe’s said the deal, which will add to its earnings in the first year after the deal closes, would help increase revenue and operating profitability in Canada by more than CAD1 billion. Only 40 of Lowe’s 1,850 stores in North America are located in Canada. Rona has 500 stores across Canada, according to its website.

“We are very excited about this transaction as it leverages the strengths of two great companies, positioning us for continued success in Canada’s over CAD 45 billion and growing home improvement industry,” said Lowe’s chairman, president and CEO Robert Niblock. “The strategic rationale of this transaction, for both companies, is very compelling.”