Lowe’s Cos Inc. is attempting to acquire Rona, Inc. once more. The organization attempted the acquisition in 2012, but was unable to come to an agreement with Rona, Inc. regarding the purchase price for acquisition. This time around, the two organizations were able to come to an agreement, with Lowe’s Cos, Inc. purchasing Rona, Inc. for $3.2 billion USD. Such a strategy is an offensive one, as opposed to a defensive one, given the size of the two organizations and the localization of Rona, Inc. to Canada. Lowe’s wished to expand its organization across the border, taking advantage of the preexisting home improvement marketplace, and the acquisition of Rona, Inc. served as the means through which such an option would be possible. Rona, Inc. was not in danger of encroaching upon the organization’s U.S. business in any way, making the acquisition an offensive one.
Lowe’s is best described as a fast follower organization. It was not the first box business home improvement store; that title was left to Home Depot, but it was quick to follow in Home Depot’s market, taking up the void in competition between the big box store and its competition in smaller hardware stores like Ace. This is, perhaps the best strategy to employ within Canada as well, and the organization has carefully selected the company for acquisition. In light of the fact that several years have gone by since the organization first desired to acquire Rona, Inc., the market has had additional time to mature, providing Lowe’s with an ideal means of entry via acquisition.

Lowe’s is aware of the strategic benefits and risks of expanding the company horizontally, including within Canada and Quebec. The company has completed horizontal acquisitions in the past, and this particular deal they were researching long before the initial failed acquisition in 2012, providing the company with ample time and opportunity to explore the lay of the land, while at the same time putting both organizations in better positions to ensure success in the deal.