Competition Bureau Fixes Home Improvement Merger Involving RONA-Réno-Dépôt

OTTAWA, September 4, 2003 — The Competition Bureau filed a consent agreement today with the Competition Tribunal resolving competition concerns with RONA's acquisition of Réno-Dépôt. The agreement requires RONA to divest the Réno-Dépôt store in Sherbrooke, Quebec, in order to ensure that local consumers continue to benefit from competitive prices and product choice.

"RONA would have been in a dominant position for consumer sales of home improvement and renovation products in Sherbrooke," said Robert Lancop, Acting Deputy Commissioner of Competition.

RONA operates 23 big box stores in Quebec under the names "RONA L'entrepôt" and "RONA Le Régional." In Ontario, it operates 8 big box stores under the banner "RONA Home & Garden." Réno-Dépôt owns 14 big box stores in Quebec and 6 in Ontario operating under the name of "The Building Box." After carefully reviewing the proposed transaction, the Bureau concluded that it would result in a substantial lessening of competition in Sherbrooke.

"This divestiture should preserve competition for the retail sale of home improvement products in Sherbrooke," said Mr. Robert Lancop.

The consent agreement provides that if RONA is unable to divest the Réno-Dépôt store in Sherbrooke, a trustee will be appointed to complete the sales process.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Tim Weil
Senior Communications Advisor
Competition Bureau
819-953-9271 or 613-296-2189 (cell.)

For general enquiries, please contact:
Competition Bureau's Information Centre
819-997-4282 or toll-free 1-800-348-5358