Lowe's says deal to buy Rona has cleared its last major milestones

A man drives a forklift in front of a Rona home improvement store in St. Eustache, Que., just outside Montreal, on July 16, 2015. (Ryan Remiorz / The Canadian Press)

OTTAWA - The federal government has signed off on a deal that will see U.S. retailer Lowe's Companies Inc. acquire Rona Inc. (TSX:RON) and become owner of Canada's largest collection of home-improvement stores.

Lowe's says it has received approval under the Investment Canada Act for the acquisition.

Together with approval by the Competition Bureau on Thursday, Lowe's says the deal has cleared its last major milestones and is expected to close May 20.

The deal was approved by Rona shareholders in March.

Lowe's came to Canada in 2007 and had 42 stores in British Columbia, Alberta, Saskatchewan and Ontario when the $3.2-billion deal was announced in February.

Rona has 496 corporate and dealer-owned stores across Canada, including 238 in Quebec.