Home Depot's Acquisition of GMS Clears Canadian Competition Bureau Hurdle

Home Depot has received clearance from the Canadian Competition Bureau for its proposed acquisition of GMS for $110 per share. The deal was announced in late June.

Home Depot, Inc. (HD) has received clearance from the Canadian Competition Bureau to proceed with its tender offer to acquire GMS, a specialty building products distributor. The approval, announced on July 2, 2025, removes the last antitrust law-related condition necessary for the consummation of the tender offer and the transactions under the previously announced merger agreement dated June 29, 2025 [1].

The tender offer, initially set to expire on September 3, was extended by the company to accommodate the regulatory process [2]. Home Depot has agreed to acquire GMS by offering $110 per share in cash. As of the expiration date on August 22, 2025, approximately 77% of the outstanding shares had been tendered, representing approximately 29,310,000 shares [2].

The merger agreement between Home Depot, Purchaser, and GMS outlines the terms of the acquisition. The tender offer remains subject to conditions such as the expiration or termination of the applicable waiting period under the Canadian Competition Act and the tender, as of immediately prior to the expiration time, of a majority of the Shares then outstanding [2].

Home Depot, the world's largest home improvement specialty retailer, has been actively expanding its operations and acquiring key players in the market to bolster its position. This acquisition of GMS aligns with Home Depot's strategy to enhance its product offerings and market reach in the specialty building products segment [1].

The clearance from the Canadian Competition Bureau is a significant milestone in the acquisition process, paving the way for the potential benefits of the transaction, including the integration of GMS's product portfolio and expertise into Home Depot's operations. However, the deal remains subject to various risks and uncertainties, including the possibility of regulatory hurdles, the ability to realize the anticipated benefits, and the integration of the businesses [2].

References:

[1] https://www.nasdaq.com/articles/home-depot-gets-clearance-canadian-competition-bureau-acquisition-gms
[2] https://ir.homedepot.com/news-releases/2025/08-25-2025-131524313