The Competition Bureau Canada has finalized a consent agreement with RONA Inc. to preserve competition in the housing construction industry amid its proposed acquisition of All-Fab Building Components.
Rona and All-Fab both operate in the lumber and building materials market in Canada. They both design, manufacture and supply roof trusses and floor trusses.
A thorough review revealed that the merger could significantly reduce competition in Saskatoon, Saskatchewan, particularly in the design, supply, and manufacturing of roof and floor trusses for housing construction. The Bureau determined that the acquisition could lead to higher prices and fewer choices for consumers in the region due to diminished rivalry between RONA and All-Fab.
To address these concerns, RONA has committed to divesting its truss manufacturing facility located in Martensville, Saskatchewan. The sale, which will be conducted with an independent purchaser approved by the Commissioner of Competition, is expected to mitigate the Bureau’s concerns and maintain healthy competition in the market.
The Competition Bureau has expressed confidence that this divestiture will effectively resolve potential anti-competitive outcomes from the proposed acquisition.
