Competition Bureau reaches agreement with RONA to preserve competition in housing construction
The building materials market is quickly expanding due to Canada's ongoing growth in housing
GATINEAU, QC, Dec. 23, 2024 /CNW/ - The Competition Bureau has entered into a consent agreement with RONA Inc. to address competition concerns related to its proposed acquisition of All-Fab Building Components.
A Bureau review concluded that the proposed transaction would likely result in a substantial lessening of competition in the design, supply and manufacturing of roof and floor trusses used in housing construction in the Saskatoon, Saskatchewan area. Specifically, the Bureau found that the loss of rivalry between Rona and All-Fab would likely result in higher prices and fewer options for customers in the area.
To resolve the Bureau's concerns, Rona has agreed to sell a truss manufacturing facility that it owns in Martensville, Saskatchewan. The sale will be made to an independent purchaser to be approved by the Commissioner of Competition.
The Bureau is satisfied that the sale will resolve the competition concerns that could result from the proposed transaction.
The complete consent agreement is available on the website of the Competition Tribunal.
Quick facts
- A roof truss is a wooden structure that provides support and strength to a roof while floor trusses are wooden structures that support the floor. Both roof and floor trusses are key components used to build new homes.
- The lumber and building materials market is an expanding market due to Canada's ongoing growth in housing.
- 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.
- Rona distributes building materials through its Rona, Dick's Lumber and ZyTech banners. All-Fab operates under the names Nu-Fab, Alliance Truss, Pacific Truss and Littfin Truss.
- A consent agreement contains remedial measures meant to address the likely anti-competitive effects of a merger. It has the force and effect of a court order once it is registered with the Competition Tribunal.
Related products
Associated links
General information:
Request for information | Complaint form
Stay connected:
X (Twitter) | Facebook | LinkedIn | YouTube | RSS Feed | Email Distribution List
The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
SOURCE Competition Bureau