Home Depot Shares Dip 0.17% as $4.18B GMS Acquisition Clears Final Hurdle Trading Volume Slides to 88th Rank

On August 29, 2025, The Home Depot (HD) saw a 0.17% decline in its stock price, with a trading volume of $0.90 billion—a 45.48% drop from the previous day—ranking it 88th in market activity. The move followed the company’s announcement that it had received final regulatory approval for its $110-per-share cash tender offer to acquire GMS Inc., a Canadian building materials distributor. The Canadian Competition Bureau’s clearance, delivered via a no-action letter, marked the last antitrust hurdle for the deal, which is structured through a wholly owned subsidiary and remains contingent on securing a majority of outstanding GMS shares by the September 3 deadline.

The acquisition, valued at approximately $4.18 billion based on GMS’s 38 million shares, aims to strengthen Home Depot’s logistics and professional contractor services by integrating GMS’s 1,000+ locations and 8,000-truck fleet with its U.S. operations. Analysts highlight the strategic value of expanding cross-border infrastructure, potentially boosting EBITDA margins by 150 basis points within three years. Shareholder support has been robust, with 77% of GMS shares tendered as of mid-August, exceeding the 50% threshold required for the transaction to proceed. This momentum reduces execution risk and underscores investor confidence in the deal’s long-term value proposition.

Home Depot’s stock has historically shown mixed performance during major M&A announcements. A 2020 acquisition of a similar scale saw a 3.2% intraday gain but closed 1.8% lower due to post-announcement volatility. Conversely, a 2022 regulatory clearance led to a 4.5% rally over three days. While past performance does not guarantee future results, the current regulatory and shareholder alignment suggests a higher probability of a smooth closure compared to prior deals.