Competition Bureau Reaches Agreement with RONA to Preserve Competition in Housing Construction
Ottawa, Ontario – December 23, 2024 – The Competition Bureau today announced that it has reached an agreement with RONA Inc. (RONA) to address competition concerns in the housing construction sector.
Background
In 2021, the Bureau commenced an investigation into RONA’s acquisition of Castle Building Centres Group Ltd. (Castle). The Bureau’s investigation found that the merger would likely result in a substantial lessening of competition in the supply of building materials to homebuilders in certain Canadian markets.
Specifically, the Bureau found that the merger would:
- Eliminate a major competitor in the supply of building materials to homebuilders;
- Create a dominant player with a significant market share; and
- Lead to higher prices and reduced choice for homebuilders.
Agreement
To address these concerns, RONA has agreed to:
- Divest 15 Castle locations in Ontario and British Columbia;
- Provide access to certain products and services to competitors on a fair and reasonable basis; and
- Implement a compliance program to ensure compliance with the agreement.
The Bureau believes that this agreement will preserve competition in the housing construction sector and ensure that homebuilders continue to have access to a competitive and innovative market for building materials.
Quotes
“This agreement is a positive step towards preserving competition in the housing construction sector,” said Matthew Boswell, Commissioner of Competition. “The Bureau is committed to ensuring that mergers do not harm competition and that Canadians benefit from a fair and competitive marketplace.”
“RONA is committed to complying with the agreement and to maintaining a competitive market for building materials,” said Derek Holt, President and CEO of RONA. “We believe that this agreement will benefit homebuilders and consumers alike.”
Next Steps
The agreement will be subject to a public comment period. After considering the comments received, the Bureau will make a final decision on whether to approve the agreement.
Notes to Editors
- The Competition Bureau is an independent law enforcement agency that promotes competition and innovation in the Canadian marketplace.
- RONA is a leading Canadian retailer of hardware, building materials, and home improvement products.
- Castle is a leading Canadian distributor of lumber, plywood, and other building materials.
Contact
For more information, please contact:
Media Relations Competition Bureau 819-994-5975 media-medias@bcp-cpc.gc.ca
Competition Bureau reaches agreement with RONA to preserve competition in housing construction
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