An agreement has been reached between the Competition Bureau and Rona Inc. in relation to concerns about the company’s proposed acquisition of All-Fab Building Components. The Competition Bureau expressed concerns about the potential impact of the acquisition on competition in the design, supply, and manufacturing of roof and floor trusses used in housing construction in the Saskatoon, Sask. area.
It also found that the loss of rivalry between Rona and All-Fab would likely result in higher prices and fewer options for customers. According to a release, 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. In order to resolve the competition issues Rona has agreed to sell a truss manufacturing facility that it owns in Martensville, Sask. The sale will be made to an independent purchaser to be approved by the Commissioner of Competition. 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, the release continues